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Zimbabwe is once again in the grip of a cash crisis this time involving its newest currency, the Zimbabwe Gold (ZiG). Introduced in April 2024 as a gold-backed solution to years of economic turbulence, the ZiG was hailed by the Reserve Bank of Zimbabwe (RBZ) as a step toward financial stability. But just over a year later, the country is facing a familiar scenario: long queues at banks, dry ATMs, and growing public frustration.
Despite official assurances that there is enough ZiG in circulation, the currency has become scarce, especially outside the capital, Harare. The crisis has reignited memories of past failures and reinforced public scepticism about yet another monetary experiment in a nation still haunted by hyperinflation and repeated currency collapses.
Zimbabwe’s monetary troubles stretch back over two decades, driven by a pattern of failed reforms, political interference, and a deeply entrenched lack of trust in the central bank. From the spectacular collapse of the Zimbabwean dollar in the 2000s to the adoption of the US dollar and the ill-fated RTGS dollar, each attempt to stabilize the economy has been undermined by erratic policy decisions and structural mismanagement.
The ZiG, the latest iteration in this long history, was introduced with promises of backing by gold reserves and a return to fiscal credibility. But those promises are already being tested by the harsh realities on the ground.
RBZ Governor John Mushayavanhu sought to calm fears in a statement , asserting that “there is no shortage of ZiG in the market.” He highlighted what he described as growing confidence in the local currency, pointing to an increase in local currency settlements through the National Payment System—from ZiG7.86 billion (26%) in April to ZiG56.8 billion (43%) by May 30, 2025.
“As of June 12, total ZiG deposits in the banking sector amounted to ZiG16 billion,” Mushayavanhu said. “Over ZiG207 million is held as physical cash by commercial banks. This is sufficient to support daily deposits and withdrawals by the public.”
But these statistics tell only part of the story. On the ground, the experience is markedly different. Consumers and businesses continue to report widespread difficulties accessing cash. Some banks have begun issuing ZiG through ATMs, while others are still reconfiguring their machines, contributing to a distribution network that remains patchy and unreliable.
The RBZ says it is working with financial institutions to improve the availability of ZiG in both physical and electronic forms. Meanwhile, the government maintains that the current macroeconomic stability and firm exchange rate will eventually build confidence in the new currency.
Yet many Zimbabweans remain unconvinced. Critics argue that without addressing the root causes corruption, weak fiscal discipline, and opaque policy-making—any new currency is doomed to suffer the same fate as its predecessors.
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