ZiG loses 37% of its power

The Zimbabwean currency Zimbabwe Gold (ZiG) comes in as the world’s second worst currency, as shown on Professor Steve Hanke’s CurrencyWatchlist.

The ZiG has depreciated by 37 percent against the American dollar year-on-year.

Inflation in Zimbabwe has over the years been pushed up by reduced local production and the resultant fall in exports.

The country is largely relying on imports, as capacity utilization falls.

Apparently, Hanke is on record calling on the President Emmerson Dambudzo Mnangagwa led administration to fully dollarise.

On the other hand, according to latest data from the Zimbabwe National Statistics Agency (ZimStat), ZiG month-on-month inflation rate fell significantly, complemented by a nearly similar downward trend in the US dollar (USD) inflation rate.

Consequently, the developments resulted in a decline in the weighted inflation rate, reinforcing hopes of a more predictable economic environment going forward.

ZimStat data shows that the ZiG Consumer Price Index (CPI) stood at 184,60 in February 2025, a slight increase from 183,76 in January.

However, ZimStat says the month-on-month inflation rate dropped to 0,5 percent, a sharp decline from the 10,5 percent recorded in January.

Zwnews