Zimbabwe has introduced a new currency called Zig, which has generated significant interest among its citizens. This currency, backed by a basket of foreign currencies, gold and other metals, has the potential to revolutionize cross-border payments and enhance financial inclusion globally.
Financial market analyst George Nhepera believes that Zig could stabilize the exchange rate, creating a more predictable operating environment. However, public reception has been mixed, with opposition supporters dismissing the currency as similar to previous ones, while ruling party supporters are more optimistic. Business owners view Zig favourably as it allows them to localize their cost structures in a stable currency.
Nhepera notes that Zig is being distributed through traditional banking channels and could serve as an effective medium of exchange, potentially reducing inflation and aiding in de-dollarization efforts. While initial scepticism may exist, Nhepera anticipates that as currency stabilizes, trust will grow.
Sikhulekelani Moyo, a business reporter, sees Zig as an innovative government initiative that can drive economic growth. While some individuals have reservations about the new currency, many have embraced it. Miss Moyo emphasizes the importance of instilling confidence in citizens and businesses to promote widespread adoption of Zig for transactions.
Overall, both analysts anticipate challenges such as lingering negative perceptions and resistance from the black market. However, they are optimistic that with the right policies and public confidence-building measures, Zig could lead to positive economic outcomes for Zimbabwe.
Thulisa Nyathi
Soweto Sunrise News
