IMF Supports ZiG Currency, Calls for Reforms

Zim Now Reporter

The International Monetary Fund has thrown its weight behind the gold-backed Zimbabwe Gold currency, urging authorities to adopt it as the country’s sole legal tender while implementing broader economic reforms.

IMF mission chief Wojciech Maliszewski said the multilateral lender supports the Reserve Bank of Zimbabwe’s efforts to stabilise the economy through the ZiG.

“The mission welcomed the authorities’ efforts to stabilise the economy and supported the objective of using ZiG as the sole legal tender once conditions are appropriate,” Maliszewski said.

The ZiG was introduced in April 2024, replacing the Zimbabwe dollar, which had collapsed under the weight of hyperinflation and lack of confidence.
It is backed by gold and other precious minerals and marks the country’s sixth currency reform since 2009.

Maliszewski, however, warned that for the ZiG to succeed, the country must allow for greater flexibility in its foreign exchange market.

“Deepening the foreign exchange market and achieving full price discovery will be crucial to support the transition,” he said. “This includes convergence of the official and parallel exchange rates.”

Currently, the official exchange rate stands at ZiG$26.95 to the US dollar, while the parallel market rate ranges between ZiG$32 and ZiG$35.

While the IMF is not recommending a fresh devaluation of the currency, it has emphasised the need for fiscal discipline and market-driven confidence.

“The mission noted the importance of strengthening reserve coverage and avoiding any form of monetary financing,” Maliszewski added.

Zimbabwe is also seeking to re-engage with the IMF through a new Staff-Monitored Programme, after the previous attempt collapsed in 2019 due to excessive money printing and policy slippages.

The SMP is seen as a critical step toward normalising relations with international creditors and unlocking access to fresh lines of credit.