ZiG falls 34%, becomes 3rd worst performing currency in world- American economist

The country’s local currency, Zimbabwe Gold (ZiG) has become the third weakest world over, renowned American economic analyst Professor Steve Hanke has said.

 

Hanke an Applied Economics Professor at John Hopkins University who is well known for analysing troubled currencies, says President Emmerson Dambudzo Mnangagwa has failed to contain ZiG’s depreciation.

 

“ZIMWatch🇿🇼: Pres. Mnangagwa is FAILING to stop the zigs and zags of the ZiG.

 

“Since January-2024, Zimbabwe’s ZiG has depreciated by ~34% against the USD, making it the 3rd WORST currency in the WORLD on this week’s Hanke’s dashboard,” he says.

 

However, the Mnangagwa administration is saying otherwise, according to them, the local currency is performing well.

 

There is a scarcity of the local currency in the market, one characteristic of a strong money, but economic analysts say the scarcity is artificial.

 

The Reserve Bank of Zimbabwe announced that it will not introduce bigger denominations in order to tame depreciation of the local currency.

 

Zwnews