Zimbabwe’s new ZiG debuts trading at 13.56 vs USD on Monday

Zimbabwe’s new currency, ZiG, debuted trading on Monday amid challenges with the nation’s sixth attempt to introduce a revamped unit, Bloomberg reported on Monday.

Reserve Bank Governor John Mushayavanhu initiated the exchange rate at 13.56 ZiG per US dollar, with the interbank market determining daily rates thereafter.

Businesses adjusted systems over the weekend, though only around half of the nation’s banks were ready for ZiG transactions on Monday. The Zimbabwe Stock Exchange denominated all share prices and reports in ZiG, rebasing indices accordingly.

Despite stock market growth, concerns arose about inflation, reaching 55.3 per cent in March. Listed firms face challenges in financial statement compilation due to the currency switch.

The Zimbabwe dollar’s demise was marked by significant devaluation, reaching 30,671 per US dollar.

It ranked as the world’s second-worst performing currency. Oxford Economics noted a need for significant monetary system change, emphasising the populace’s skepticism.

The transition to ZiG inadvertently disrupted the parallel market, cutting off avenues for currency speculation. Interest rates were reduced from 130 to 20 per cent, easing economic strain, with inflation projected to end the year in single digits.