Chiwenga Rubbishes Mnangagwa’s ZiG
By Business Reporter–Acting President Constantino Chiwenga has signalled that he may phase out the Zimbabwe Gold (ZiG) currency and introduce a new monetary system, as the ZiG continues to lose value on the black market.
Currently, the ZiG is trading at a shocking US$1:24, a dramatic drop from its launch rate of US$1:13.50 in just five months.
Many businesses have begun rejecting the currency, prompting Chiwenga to urge citizens to rally behind it.
His remarks come in the absence of President Emmerson Mnangagwa, who is on a state visit to China, fueling speculation that Chiwenga is positioning himself to succeed Mnangagwa in 2028.
Analysts believe the potential currency overhaul could be a key feature of his administration.
Speaking at the burial of Brigadier General (Retd) Shadreck Ndabambi at the National Heroes Acre in Harare, Chiwenga reassured the public that the government is taking steps to stabilize the economy by addressing exchange rate manipulation.
“The government is working to promote the wider use of our local currency and is putting in place measures to close the gaps that allow arbitrage opportunities,” Chiwenga stated.
Despite his calls for confidence in the ZiG, skepticism is widespread. Renowned economist Professor Gift Mugano criticized the government’s approach, arguing that the lack of proper reserves, poor policy execution, and political toxicity are at the root of the currency’s collapse.
“I warned the government to create demand for ZiG by ensuring all services, including passports and taxes, were payable in the local currency. Instead, the government rejected its own money, starting with fuel and public services,” Mugano said.
He added that Zanu PF’s failure to foster political stability has further eroded market confidence, making the currency unsustainable.
The rapid decline of the ZiG has placed immense pressure on Zimbabwe’s economy, with soaring prices for goods and services.
Chiwenga’s hint at a currency shift may indicate a broader strategy as he prepares for a potential power transition in 2028, but the immediate question remains: can Zimbabwe’s economy survive under the ZiG, or is a new monetary system inevitable?
