Zimbabwe's ZiG steadies as it chases the US dollar

Zimbabwe's gold-backed currency, the ZiG, has held broadly stable with sharply lower inflation, as authorities try to persuade a sceptical public to embrace the unit over the US dollar.

The currency has traded at around 25 to the dollar at the official rate, following a devaluation in late 2024. Monthly inflation has fallen to low single digits, with annual inflation around 4.4% in early 2026 — a marked improvement for a country long plagued by monetary instability.

To bolster confidence, the Reserve Bank rolled out a second series of ZiG banknotes, introducing higher denominations from April to make the currency more usable for everyday transactions.

There are signs of gradual adoption. The share of transactions conducted in US dollars has fallen from about 85% to 70%. Even so, the greenback remains dominant, especially in the tourism sector, where hotels, lodges, parks and many shops still price and transact primarily in dollars.

Economists remain divided over whether the ZiG represents a durable break with Zimbabwe's troubled monetary history or simply the latest chapter in a long struggle to establish a stable local currency. The coming months will test whether the relative calm can hold.