ZIG DOLLARS Exchange Rate vs US Dollars Today

Reserve Bank Governor Dr. John Mushayavanhu has finally revealed the eagerly anticipated 2024 Monetary Policy Statement. Among the major changes, he introduced a new currency named ZiG, with an initial exchange rate now set, starting today, as stated by the RBZ governor.

Dr. Mushayavanhu directed all banks to promptly transition all RTGs accounts into ZiG accounts. Additionally, the currency, as outlined by the RBZ governor, will be supported by gold and other foreign currencies. Furthermore, the Central Bank governor declared the abandonment of the auction system.

Zimbabwe’s new money will start at a healthy exchange rate set at 1:13 to the United States dollar.

Other important details about the ZiG Currency are stated below

Dr. John Mushayavanhu, the incoming Governor of the Reserve Bank of Zimbabwe, unveiled the following key points during the Monetary Policy Statement presentation:

• Introduction of Zimbabwe Gold (ZiG) as the replacement for the Zimbabwe Dollar (ZWL), with an initial exchange rate set at 13.5616 against the US dollar.
• ZiG will be available in both coins (25c and 50c) and notes (1, 2, 5, 10, 20, 50, 100, and 200).
• Implementation of a market-determined exchange rate, discontinuing the previous auction system which ceased in December 2023.
• Transfer of all quasi-fiscal obligations to the treasury.
• Banks will accept old ZWL currency for the next 21 days.
• ZiG will be backed by a reserve comprising US$100 million, 2,522kg of gold valued at US$185 million, and other precious metals, along with a ZWL$2.6 trillion (US$80 million) reserve.
• 25% of total export receipts must be surrendered to the RBZ for injection into the market.
• Elimination of monthly service and maintenance fees on individual bank accounts holding US$100 or less.
• Requirement for companies to settle 50% of their tax obligations in ZiG.
• Retainers, shops, and mobile financial services have a 7-day deadline to adapt their systems for ZiG transactions.
• RBZ’s ability to increase money supply contingent upon expanding reserves.