Zimbabwe’s Newly Launched Currency ZIG, Faces Low Acceptance by Citizens
2 min read
Reports have revealed that the newly launched Zimbabwe currency the ZIG, which was introduced in early April, has been plagued with low acceptance by Zimbabweans.
In late April, the Central Bank of Zimbabwe started circulating the new currency to replace the old one that has been battered by depreciation. Meanwhile, amid the rollout of the ZIG, it has been faced with outright rejection by the people.
Several government departments and businesses are also refusing to accept the new currency, preferring to stick with the U.S. dollar, which remains the most trusted currency among Zimbabweans.
These businesses say they would rather forgo a sale than accept the ZiG, which led to the freezing of their bank accounts, by the government, accusing them of rejecting the new currency.
Commenting on the mistrust of ZIG by the citizens, Zimbabwe president President Emmerson Mnangagwa urged Zimbabweans to trust the currency, calling it a matter of “national identity and dignity.”
However, after decades of economic turmoil and repeated currency failures, many remain skeptical about the new currency’s prospects. As the ZiG enters circulation, its fate remains uncertain, with Zimbabweans torn between the allure of a new currency and the safety of the tried-and-true U.S. dollar.
Meanwhile, the government has reportedly allowed some businesses, such as gas stations, to refuse to accept the ZiG in favor of U.S. dollars. Some departments, like the office that issues and renews passports, accept only U.S. dollars.
The ZiG is the sixth currency Zimbabwe has used since the 2009 collapse of the Zimbabwe dollar amid hyperinflation of 5 billion percent, one of the world’s worst currency crashes to date.
