Zimbabwe President Proposes Replacing US Dollar with ZiG

President Emmerson Mnangagwa of Zimbabwe has announced plans to phase out the US dollar and establish the Zimbabwe Gold (ZiG) as the sole legal tender before the 2030 deadline to end the multicurrency system, citing the need to propel the country's own currency. Mnangagwa aims for the ZiG to fully penetrate the market within two years, making it the exclusive currency accepted in the country, a move that would impact transactions where the US dollar is currently dominant. The decision to transition to ZiG is driven by the desire to reduce reliance on the US dollar amid perceived hostilities from the United States government. This shift presents a significant policy change with potential economic implications, requiring careful consideration of various factors for a successful transition.