In early April, Zimbabwe rolled out a new gold-backed currency called the ZiG, or Zimbabwe Gold and it is the country's sixth currency in 25 years.

This is the latest effort by the southern African nation to tackle its prolonged currency crisis, a symptom of its ongoing economic challenges. Zimbabwe has faced persistent high inflation, with rates surpassing 500% in recent years. In March 2024, the annual inflation rate reached 55.3%, marking a seven-month high.

The ZiG was meant to mitigate the currency instability and hyperinflation that has plagued the country for decades but the results have not been as expected.

This month, Zimbabwe's central bank devalued its gold-backed currency by more than 40% against the US dollar which signals trouble for the currency.

The Reserve Bank of Zimbabwe (RBZ) lowered the local exchange rate to 24 Zig per $1 (or £0.75). This decline is driven by rising demand for the US dollar, which is also legal tender in the country. The move follows warnings from major retailers, who threatened store closures if the rate had remained fixed at its previous level.

Before the ZiG's sharp decline, the government had aimed to establish the gold-backed currency as the sole legal tender by 2026. It remains to be seen how this will play out