Zimbabwe is moving to strengthen its gold-backed ZiG currency by developing a domestic bond market and extending the maturity of local-currency financial instruments. Central bank Governor John Mushayavanhu said the authorities want the ZiG to function as a store of value rather than merely a transactional currency. Toward this goal, the Reserve Bank plans to expand its term deposit program beyond the existing 30- and 90-day instruments, which offer yields of 8% and 11%, respectively. Government Treasury bonds are also expected to enter the market to establish a longer-term yield curve. Introduced in April 2024, the ZiG is Zimbabwe’s sixth attempt to establish a stable domestic currency. However, there have been several challenges to widespread adoption, including a lack of trust by Zimbabweans.
