Zimbabwe’s gold-backed currency, the Zimbabwe Gold (ZiG), is expected to remain stable throughout the year, buoyed by a record 46.7 tonnes of gold output in 2025, which has significantly strengthened the reserves underpinning the local unit, economists say.
Introduced in April 2024, by Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu, the ZiG was designed as a durable and credible currency backed by gold, precious minerals and foreign currency reserves. Although it faced initial scepticism from some market players analysts note that its performance has steadily improved driven by strong reserve accumulation, disciplined monetary policy and rising confidence in its underlying fundamentals.
Official statistics confirm that Zimbabwe’s 2025 gold production is the highest ever recorded, giving the central bank more scope to expand its reserve buffers and support the ZiG’s long-term stability.
In an interview with the media, yesterday, Zimbabwe Economics Society vice president, Dr Misheck Ugaro, said the surge in gold output directly reinforces the currency’s strength.
“This is one key attempt to facilitate a long-term durable currency, and from what we are seeing, the nation is on course to exciting times riding on the gains of the domestic currency. Any rise in gold production will definitely strengthen the ZiG as the central bank maintains a tight monetary policy and builds more reserves,” he said.
Dr Ugaro added that the trend signals improving macroeconomic conditions, with reserve accumulation playing a central role in protecting currency stability.
University of Zimbabwe Business School Director, Professor Albert Makochekanwa, shared similar views emphasising that sustained currency stability is critical for competitiveness and long-term growth.
“A stable and stronger domestic currency lays the foundation for exciting times in the economy. Attempts by the central bank to maintain a tight monetary policy stance will enhance the competitiveness of the ZiG. There are many benefits to using a domestic currency rather than relying on foreign currencies,” he noted.
President Emmerson Mnangagwa has also reaffirmed Government’s commitment to macroeconomic stability, highlighting strengthened foreign currency inflows and accelerated reserve growth.
“The tight monetary and fiscal environment has remained favourable for sustained economic activity. My Government is diligently implementing the necessary policies to maintain currency stability and tame inflation. The country’s foreign currency generation capacity continues to strengthen, with inflows reaching US$10.4 billion as of August 2025, a 26.8 percent increase from last year,” he said.
President Mnangagwa added that foreign currency reserves rose to US$900 million by the end of September 2025, up from US$700 million in June, noting that the World Bank ranked Zimbabwe among the top global performers in reserve accumulation.
Meanwhile, official data show a steady rise in electronic ZiG transactions, signalling wider public acceptance of the currency. Authorities say the forthcoming rollout of new ZiG notes will further boost confidence, building on existing gains in stability and reserve backing.
