Zimbabwe sees increased use of ZiG

Online Reporter
Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu has said that the use of the Zimbabwe Gold (ZWG) currency is on the rise, although most transactions in the country are still being conducted in foreign currency.
Speaking on a ZTN podcast this morning, Dr Mushayavanhu noted that 30 percent of transactions are now being conducted in ZWG, a notable increase since its introduction.
However, he acknowledged that foreign currency, particularly the US dollar, continues to dominate, accounting for 70 percent of transactions in the formal economy.
“The adoption of ZWG is steadily increasing as businesses and consumers become more familiar with it. We expect this trend to continue as confidence in the currency grows,” Dr Mushayavanhu said.
Despite the gradual uptake of ZWG, Dr Mushayavanhu said Zimbabwe’s informal sector remains heavily cash-driven.
“The informal sector is primarily reliant on cash transactions, which presents a challenge in terms of expanding the use of digital currency,” he said.
RBZ has been working towards promoting the use of ZWG as part of efforts to stabilise Zimbabwe’s currency system and reduce dependency on foreign currency.
Government introduced the gold-backed digital currency as a hedge against inflation and currency volatility, aiming to restore confidence in the local monetary system.