Zimbabwe’s ZiG faces a hard test: Can it earn trust and replace the US dollar?

Past losses shape choices

Zimbabweans who saw savings lose value and wages shrink during earlier currency crises remain wary of holding the ZiG. One worker receives about a third of his salary in the currency and exchanges it quickly, citing losses from the collapse of a previous currency.

Those experiences help explain why official assurances have not automatically created confidence. For Mbwandarikwa, the memory of losing pension savings remains part of the decision about whether to trust the currency.

Inflation is only one measure

The Reserve Bank of Zimbabwe reported annual ZiG inflation of 3.7 percent last month. But low inflation by itself does not ensure that people will save in the currency or use it for daily purchases.

One observer said demand for ZiG was subdued and that the currency needed to be available in proportion to demand. The article does not identify that speaker.

Businesses test everyday use

For businesses, customer acceptance offers a practical measure of whether the ZiG can take on a larger role. Chigumira says few customers pay in ZiG, showing the limits of its routine use.

The government’s effort to reduce dollar dependence cannot rest on gold and other mineral resources alone. People also need to believe the currency will retain value and remain useful for expenses and future savings.

A gradual transition ahead

Using ZiG for payments does not necessarily mean people trust it as a store of value. The central test for Zimbabweans who have lived through repeated currency crises is whether it can preserve earnings and savings over time.