Zimbabwe's ZiG is the world's newest currency and its latest attempt to resolve a money crisis

HARARE, Zimbabwe (AP) — Out with the Zimbabwe dollar, in with the ZiG.

Zimbabwe on Tuesday started circulating a new currency to replace one that has been battered by depreciation and often outright rejection by the people. The ZiG was introduced electronically in early April, but people are now able to use banknotes and coins.

It's the southern African country's latest attempt to halt a long-running currency crisis underlining its persistent economic troubles. The government had previously floated various ideas to replace the Zimbabwe dollar, including introducing gold coins to stem inflation and even trying out a digital currency.

Since it was launched electronically on April 5, the ZiG — short for Zimbabwe Gold and backed by the country's gold reserves — appears to be heading down the same path of mistrust, with some government departments refusing to accept it.

The ZiG is the sixth currency Zimbabwe has used since the spectacular 2009 collapse of the Zimbabwe dollar amid hyperinflation of 5 billion percent, one of the world's worst currency crashes to date. That set off a chaotic series of events: first the U.S. dollar was allowed as legal tender, then banned, then unbanned.

A new “bond note” became legal tender, the Zimbabwe dollar was reintroduced before the gold coins and digital currency were tried.

However, nothing brought any currency stability and the U.S. dollar remains the most trusted for ordinary Zimbabweans.

As the shiny new ZiG banknotes hit the streets, the mistrust was evident.

Kudzanayi Mande, a vegetable trader at the crowded Mbare market in the capital of Harare, said she would rather forgo a sale than accept the ZiG. She was confused, the 56-year-old said.

“Already there is an official exchange rate and a depreciated black market rate, so I will wait a bit to see what its real value is,” she said. "The U.S. dollar is still a safer bet.”

The government has allowed some businesses, such as gas stations, to refuse to accept the ZiG in favor of U.S. dollars. Some departments, like the office that issues and renews passports, accept only U.S. dollars.

At the same time, other businesses are being ordered to only use the ZiG, and face punishment if they don't.

“The government prints the money so it should be the first to accept the currency and everyone else will follow," said Gift Mugano, an economics professor at South Africa’s Durban University of Technology.

“Otherwise it is behaving like someone who feeds on takeaways but wants others to eat the food they cook,” Mugano said. "It becomes suspicious.”

Many in Zimbabwe still remember when a 100 trillion Zimbabwe dollar banknote was printed in 2009 at the height of the hyperinflation to keep up with spiraling prices.

At one point, a loaf of bread cost more than 500 million Zimbabwe dollars. Prices would change from when customers walked into a grocery store to when they lined up to pay at the cash register. Restaurants stopped displaying prices on menus as they would go up over the course of a dinner. People lugged around bags stuffed with banknotes. Savings and pensions became worthless.

Through the ordeals, the greenback remained precious — and highly valued on the black market.

Across Zimbabwe, the U.S. dollar is still widely used, from paying rent and school fees to buying groceries. Many take their local currency earnings to the black market to exchange for dollars since banks don't give out U.S. dollars. Some people stash their U.S. dollars at home.

The government of President Emmerson Mnangagwa has taken a hard-line approach — dozens of black market currency dealers were arrested and have been in pretrial detention for weeks, accused of trying to undermine the new currency. After the ZiG was introduced electronically, bank accounts of some businesses were frozen, accused by the government of rejecting the new currency.

Authorities say they have faith in the ZiG because it's backed by the country's gold reserves. Mnangagwa said in a speech on Monday it was a matter of “our national identity and dignity” to trust the ZiG.

Though some hopeful Zimbabweans headed for the banks Tuesday to get their hands on the new currency, many remained skeptical after two decades of turmoil.

An online news outlet published a political cartoon showing a policeman struggling to hold up a collapsing house with the word ZiG on it.

The caption: “World’s first police backed currency.”

Follow AP Africa news: https://apnews.com/hub/africa

A till operator packs old Zimbabwean dollar notes into a shopping basket as customers use them to buy groceries in a supermarket in Harare, Thursday, April 25, 2024. Zimbabwe started circulating banknotes and coins for another new currency Tuesday in its latest attempt to solve a long-running monetary crisis that has seen the government try gold coins and a digital currency among other ideas. (AP Photo/Tsvangirayi Mukwazhi)

Young boys interact while using old Zimbabwean dollar notes to buy groceries in a supermarket in Harare, Thursday, April 25, 2024. Zimbabwe started circulating banknotes and coins for another new currency Tuesday in its latest attempt to solve a long-running monetary crisis that has seen the government try gold coins and a digital currency among other ideas. (AP Photo/Tsvangirayi Mukwazhi)

A man uses old Zimbabwean dollar notes to buy groceries in a supermarket in Harare, Thursday, April 25, 2024. Zimbabwe started circulating banknotes and coins for another new currency Tuesday in its latest attempt to solve a long-running monetary crisis that has seen the government try gold coins and a digital currency among other ideas. (AP Photo/Tsvangirayi Mukwazhi)

A woman uses old Zimbabwean dollar notes to buy groceries in a supermarket in Harare, Thursday, April 25, 2024. Zimbabwe started circulating banknotes and coins for another new currency Tuesday in its latest attempt to solve a long-running monetary crisis that has seen the government try gold coins and a digital currency among other ideas. (AP Photo/Tsvangirayi Mukwazhi)

A woman shows the new Zimbabwean bank coins called the ZiG, in the streets of Harare, Zimbabwe, Tuesday, April 30, 2024. Zimbabwe started circulating banknotes and coins for another new currency Tuesday in its latest attempt to solve a long-running and at times baffling monetary crisis that has seen the government try gold coins and a digital currency among other ideas. (AP Photo/Tsvangirayi Mukwazhi)

A security guard stands outside a bank while waiting for clients to enter and withdraw the new Zimbabwean banknotes called the ZiG, in the streets of Harare, Zimbabwe, Tuesday, April 30, 2024. Zimbabwe started circulating banknotes and coins for another new currency Tuesday in its latest attempt to solve a long-running and at times baffling monetary crisis that has seen the government try gold coins and a digital currency among other ideas. (AP Photo/Tsvangirayi Mukwazhi)

People check the new Zimbabwean bank coins called the ZiG, in the streets of Harare, Zimbabwe, Tuesday, April 30, 2024. Zimbabwe started circulating banknotes and coins for another new currency Tuesday in its latest attempt to solve a long-running and at times baffling monetary crisis that has seen the government try gold coins and a digital currency among other ideas. (AP Photo/Tsvangirayi Mukwazhi)

A man reads a Newspaper while waiting in a queue to withdraw the new Zimbabwean banknotes called the ZiG, in the streets of Harare, Zimbabwe, Tuesday, April 30, 2024. Zimbabwe started circulating banknotes and coins for another new currency Tuesday in its latest attempt to solve a long-running and at times baffling monetary crisis that has seen the government try gold coins and a digital currency among other ideas. (AP Photo/Tsvangirayi Mukwazhi)

A man smiles while holding the new Zimbabwean banknote, called the ZiG, in the streets of Harare, Zimbabwe, Tuesday, April 30, 2024. Zimbabwe started circulating banknotes and coins for another new currency Tuesday in its latest attempt to solve a long-running and at times baffling monetary crisis that has seen the government try gold coins and a digital currency among other ideas. (AP Photo/Tsvangirayi Mukwazhi)

A woman holds the new Zimbabwean banknotes and coins called the ZiG, in the streets of Harare, Zimbabwe, Tuesday, April 30, 2024. Zimbabwe started circulating banknotes and coins for another new currency Tuesday in its latest attempt to solve a long-running and at times baffling monetary crisis that has seen the government try gold coins and a digital currency among other ideas. (AP Photo/Tsvangirayi Mukwazhi)

NEW YORK (AP) — U.S. stocks careened through a manic Monday after President Donald Trump threatened to crank his tariffs higher, despite a stunning display showing how dearly Wall Street wants him to do the opposite.

The S&P 500 slipped 0.2% at the end of a day full of heart-racing reversals as battered financial markets try to figure out what Trump’s ultimate goal is for his trade war. If it’s to get other countries to agree to trade deals, he could lower his tariffs and avoid a possible recession. But if it’s to remake the economy and stick with tariffs for the long haul, stock prices may need to fall further.

The Dow Jones Industrial Average fell 349 points, or 0.9%, and the Nasdaq composite edged up by 0.1%.

All three indexes started the day sharply lower, and the Dow plunged as many as 1,700 points following even worse losses elsewhere in the world. But it suddenly surged to a gain of nearly 900 points in the late morning. The S&P 500, meanwhile, went from a loss of 4.7% to a leap of 3.4%, which would have been its biggest jump in years.

The sudden rise followed a false rumor that Trump was considering a 90-day pause on his tariffs, one that a White House account on X quickly labeled as “fake news.” That a rumor could move trillions of dollars’ worth of investments shows how much investors are hoping to see signs that Trump may let up on tariffs.

Stocks quickly turned back down, and shortly afterward, Trump dug in further and said he may raise tariffs more against China after the world’s second-largest economy retaliated last week with its own set of tariffs on U.S. products.

It’s a slap in the face to Wall Street because it suggests Trump may not care how much pain he inflicts on the market. Many professional investors had long thought that a president who used to crow about records reached under his watch would pull back on policies if they sent the Dow reeling.

On Sunday Trump told reporters aboard Air Force One that he wasn’t concerned about a sell-off and that “sometimes you have to take medicine to fix something.”

Trump has given several reasons for his stiff tariffs, including to bring manufacturing jobs back to the United States, which is a process that could take years. Trump on Sunday said he wanted to bring down the numbers for how much more the United States imports from other countries versus how much it sends to them.

Indexes nevertheless did keep swinging between losses and gains Monday after Trump’s latest tariff threat, in part because hope still remains in markets that negotiations may still come.

“We’re not calling the all-clear at all, but when you have this type of volatility in the market, of course you’re going to have back and forth” in markets not just day to day but also hour to hour, said Nate Thooft, a senior portfolio manager at Manulife Investment Management.

“We’re all waiting for the next bit of information,” he said. “Literally a Truth Social tweet or an announcement of some sort about real negotiations could dramatically move this market. This is the world we live in right now.”

All that seemed certain Monday was the financial pain hammering investments around the world for a third day after Trump announced tariffs in his “Liberation Day.”

Stocks in Hong Kong plunged 13.2% for their worst day since 1997. A barrel of benchmark U.S. crude oil dipped below $60 during the morning for the first time since 2021, hurt by worries that a global economy weakened by trade barriers will burn less fuel. Bitcoin sank below $79,000, down from its record above $100,000 set in January, after holding steadier than other markets last week.

Trump’s tariffs are an attack on the globalization that’s remade the world’s economy, which helped bring down prices for products on the shelves of U.S. stores but also caused production jobs to leave for other countries.

It also adds pressure on the Federal Reserve. Investors have become nearly conditioned to expect the central bank to swoop in as a hero by slashing interest rates to protect the economy during every downturn. But the Fed may have less freedom to act this time around because inflation remains higher than the Fed would like. And while lower interest rates can goose the economy, they can also put upward pressure on inflation.

“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” JPMorgan CEO Jamie Dimon, one of the most influential executives on Wall Street, wrote in his annual letter to shareholders Monday. “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”

In the bond market, Treasury yields rallied to recover some of their sharp drops from earlier weeks. Some of the big move may have been because of reduced expectations for cuts to interest rates by the Fed. Some analysts also said it could be due to investors outside of the United States wanting to pare their U.S. investments.

The yield on the 10-year Treasury jumped to 4.20% from 4.01% late Friday.

Earlier in the day, the S&P 500 briefly fell more than 20% below its record set less than two months ago. If it finishes a day below that bar, it would be a big enough drop that Wall Street has a name for it. A “bear market” signifies a downturn that’s moved beyond a run-of-the-mill 10% drop, which happens every year or so, and has graduated into something more vicious.

The S&P 500, which sits at the heart of many investors’ 401(k) accounts, is coming off its worst week since COVID began crashing the global economy in March 2020.

All told, the index fell 11.83 points Monday to 5,062.25. The Dow Jones Industrial Average dropped 349.26 to 37,965.60, and the Nasdaq composite added 15.48 to 15,603.26.

Kurtenbach reported from Bangkok. McHugh reported from Frankfurt, Germany. Associated Press writers Ayaka McGill, Paul Harloff, Matt Ott and Jiang Junzhe also contributed.

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

President Donald Trump is seen on the television as traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

President Donald Trump is seen on the television as traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Bobby Charmak, left, and others work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

An electronic display shows financial information on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Federico DeMarco works on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Chris Lagana works on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the options floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

While a stock exchange trader sits in front of his monitors on the trading floor of the Frankfurt Stock Exchange, Germany, the display board with the Dax curve shows a value of less than 20,000 points. (Arne Dedert/dpa via AP)

While a stock exchange trader sits in front of his monitors on the trading floor of the Frankfurt Stock Exchange, Germany, the display board with the Dax curve shows a value of less than 20,000 points. (Arne Dedert/dpa via AP)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 7, 2025. (AP Photo/Ahn Young-joon)

An electronic stock board shows that Nikkei stock average dropped over 2,900 Japanese yen in Tokyo Monday, April 7, 2025. (Kyodo News via AP)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won, top right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 7, 2025. (AP Photo/Ahn Young-joon)

A person walks past an electronic stock board in Tokyo Monday, April 7, 2025. (Kyodo News via AP)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 7, 2025. (AP Photo/Ahn Young-joon)

US President Donald Trump appears on a television screen at the stock market in Frankfurt, Germany, Thursday, April 3, 2025. (AP Photo/Michael Probst)

A screen displays financial news as traders work on the floor at the New York Stock Exchange in New York, Thursday, April 3, 2025. (AP Photo/Seth Wenig)