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Recent reports indicate that Zimbabwe’s newly launched currency, the ZIG, introduced in early April, is encountering low acceptance among the population.
Towards the end of April, the Central Bank of Zimbabwe initiated the circulation of the new currency as a replacement for the depreciated old currency. However, the rollout of the ZIG has met with significant resistance from citizens.
Many Zimbabweans, along with several government departments and businesses, are hesitant to adopt the new currency, opting to continue using the U.S. dollar, which retains the highest level of trust among the populace.
Businesses that refuse to accept the ZIG risk having their bank accounts frozen by the government, which accuses them of rejecting the new currency.
In response to the widespread mistrust of the ZIG, President Emmerson Mnangagwa has called on Zimbabweans to have faith in the currency, framing it as a matter of “national identity and dignity.”
Despite the president’s appeal, years of economic instability and recurring currency crises have left many Zimbabweans skeptical about the prospects of the new currency. As the ZIG enters circulation, its future remains uncertain, with citizens torn between embracing the novelty of a new currency and seeking the stability offered by the familiar U.S. dollar.
Meanwhile, the government has reportedly granted certain businesses, such as gas stations, permission to continue transacting exclusively in U.S. dollars. Additionally, some government departments, including the passport office, exclusively accept payments in U.S. dollars.
The ZIG marks the sixth currency utilized by Zimbabwe since the collapse of the Zimbabwe dollar in 2009, amidst hyperinflation reaching a staggering 5 billion percent, marking one of the most severe currency crises globally to date.
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