Zimbabwe’s bustling informal sector, which constitutes approximately 75% of national employment, is turning away from the faltering Zimdollar, also known as the RTGS dollar, amidst fears of its diminishing value. The eagerly anticipated introduction of the new ZIG currency, initially slated for April 8, has been postponed until April 30th, leaving the US Dollar to dominate the market.
Economist Happy Zengeni emphasized the importance of discipline and sincerity in implementing new measures aimed at stabilizing the economy and reducing inflation. Zengeni highlighted the disparity in capacity between ordinary Zimbabweans and authorities, stressing the need for genuine commitment from the latter in addressing economic challenges.
Prior to the announcement of the forthcoming gold-backed currency, ZIG, the Zimdollar was trading at a staggering 28,720 to 1 US dollar. The news of the currency’s devaluation has left individuals like street vendor Mildred Mapfumo feeling disheartened. Mapfumo, who relies on selling fruits to support her family, had been saving RTGS Dollars for her children’s tuition, only to find her savings drastically devalued.
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Zimbabwe has a history of currency changes, with the RTGS dollar being introduced, phased out, and preceded by bearer cheques. However, concerns linger among Zimbabweans regarding the effectiveness of the new ZIG currency in combating the persistent inflation plaguing the country.
