The introduction of Zimbabwe’s new currency, the Zimbabwe Gold or ZiG, has thrown the nation into financial disarray, triggering chaos and confusion across the country. What was meant to be a stabilising reform has instead stranded millions, especially the poor and vulnerable, who now find themselves cut off from vital financial services. Since last Friday, those who rely on RTGS, bond notes, and Ecocash have been unable to conduct even the most basic transactions.
Over the weekend, many ordinary citizens were shocked to discover they were locked out of the system. With RTGS and bond notes suddenly unusable, people were left unable to buy food, pay for transport or meet urgent daily needs. While Reserve Bank of Zimbabwe Governor John Mushayavanhu had initially promised a quick transition, the timeline has since been pushed to the end of the month. For a country already battered by poverty and inflation, this delay is not just an inconvenience but a crisis.
Econet, the telecoms giant behind Ecocash, has managed to complete the switch to ZiG. But this progress is cold comfort to the many who still depend on RTGS and bond notes, which remain suspended. Mistrust is high, and many fear the reintroduction of arbitrage and exchange rate manipulation. Zimbabweans remember the pain of previous currency changes, where savings were wiped out overnight and basic commodities became unaffordable.
Banks added fuel to the fire when they began notifying clients that digital services would be delayed. One such message came from Stanbic Bank, stating that although the conversion had taken place over the weekend, system verification checks were still ongoing. This has left customers in limbo, unable to access their own money.
In the informal economy, where most Zimbabweans earn a living, the situation is even worse. Some vendors have begun rejecting bond notes entirely. Others are accepting them but at exploitative rates. Public transport operators, ever quick to take advantage of a crisis, are now demanding US dollars. The working poor who receive wages in local currency are being priced out of basic mobility and access to services.
This is not Zimbabwe’s first brush with currency chaos. The scars of 2008 remain fresh. The infamous hyperinflation era that gave birth to one hundred trillion dollar notes haunts every new monetary policy. The ZiG was introduced with the intention of creating a more structured and reliable currency. But that promise rings hollow for many Zimbabweans who continue to suffer while the elite and well-connected shield themselves from the fallout.
Today, over 80 percent of all transactions in Zimbabwe are conducted in foreign currencies, particularly the US dollar. Most businesses have openly rejected the ZiG, preferring the stability of the greenback. The new exchange rate of US$1 to ZiG 13.5616 was meant to bring clarity, yet what has followed is confusion. Prices have skyrocketed in the days since the announcement. Where US$0.50 was recently worth ZW$3,500, the same coin now fetches ZW$5,000 to ZW$10,000 depending on who is selling.
Meanwhile, those attempting to deposit large amounts of bond notes into banks are being interrogated. Even deposits of just ZA$100,000, worth less than US$20, are being flagged and questioned. Banks are scrambling to complete system upgrades, with assurances from the Bankers Association of Zimbabwe that most institutions will be operational by tomorrow.
The unbanked public has been given just 21 days to turn in their old currency. Yet many do not even know where to go, or whether it is worth it. This is not reform. This is state-induced suffering. Zimbabweans deserve a financial system that works for them, not one that discards them in the name of economic experiments. The ZiG rollout has once again shown how disconnected this government is from the people it claims to serve.
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