The Zimbabwean government has given the green light to a roadmap that will see the phase-out of the U.S. dollar in favor of its new bullion-backed currency, the ZiG, for transactions within the country.
Facing a prolonged currency crisis over the past decade, the southern African nation has heavily relied on the U.S. dollar, which currently dominates about 70 percent of all economic transactions in the nation.
Encouraged by the positive performance of the ZiG in curbing inflation and maintaining a stable exchange rate, the Zimbabwean government is considering advancing the timeline for the adoption of a single currency, possibly before the initial target of 2030.
Introduced in April, the ZiG is supported by gold reserves.
"The use of the local currency is always the best way for any country to operate, we are no exception. However, when you have the kind of instability that is currently prevailing, the market defaults to a more stable currency, in this case the U.S. dollar. And unless the fundamentals underlying the local currency itself are fixed, the market will always run to safety," said Farai Mtambanengwe, chairman of the SMEs Association of Zimbabwe.
To transition successfully, Zimbabwe will need to boost exports and restore public trust in its new currency.
In Zimbabwe's predominantly cash-based informal economy, the preference for conducting business in U.S. dollars remains strong, with many hoping the multi-currency system will continue.
"The ZiG has maintained its value unlike the previous currency. If it remains as strong then it should continue to circulate with the U.S. dollar," said Pachawo Kativhu, an informal trader.
"I import the goods I sell, so using the U.S. dollar works for me. I am concerned that if we start using the ZiG only, I might not be able to access foreign currency to import," said Patience Chawanda, another informal trader.
Zimbabwe adopted the U.S. dollar in 2009 after hyperinflation decimated its local currency. This legacy could make it challenging to completely eliminate the greenback from the economy.
"The market dollarized on its own and it does not need the authorities to tell it not to use U.S. dollars. 50 to 70 percent of our market is a cash market, you cannot take away the dollars from people's pockets, from underneath their mattresses, that's where the dollars are," said Tinashe Murapata, an economic analyst.
Zimbabwe approves roadmap to abandon US dollar for new bullion-backed currency
Chinese and foreign scientists have jointly carried out a series of exchange and investigation activities this week to respond to the United Nations' initiative on glacier preservation.
The United Nations declared 2025 as the International Year of Glaciers' Preservation, accompanied by the proclamation of the 21st March of each year as the World Day for Glaciers starting in 2025.
A public advocacy and glacier investigation activity with the initiative of "Let the Glacier Cool" was launched at Dagu Glacier scenic area in southwest China's Sichuan Province, a key place in global glacier preservation, from Monday to Tuesday.
In 2024, the Global Glacier Loss List (GGCL) project was jointly launched by Rice University, the University of Iceland, the Icelandic Glaciological Society, the World Glacier Monitoring Service (WGMS), and the United Nations Educational, Scientific and Cultural Organization (UNESCO).
The project tracks recently disappeared, almost disappeared, and critically endangered glaciers worldwide. Among them, the Dagu Glacier is the only glacier in China on the list.
In this regard, Chinese and foreign glacier experts and scholars conducted in-depth investigations into the changes in Dagu Glacier during the event.
"Let China's voice be heard in the 2025 International Year of Glaciers' Preservation, World Day for Glaciers, and the Decade of Action for Cryospheric Sciences. We need to awaken people's awareness of glacier changes, and everyone can reduce emissions and live a green life to slow down global warming, so that we can prolong the life of glaciers," said Li Zhongqin, a researcher at the Northwest Institute of Eco-Environment and Resources (NIEER) under the Chinese Academy of Sciences (CAS).
Meanwhile, the Dagu Glacier International Academic Summit Forum was held in Chengdu, capital of Sichuan, from Sunday to Tuesday.
The forum was jointly organized by the NIEER, the Center for Glacier Research of the National Academy of Sciences of Tajikistan, the Institute of Mountain Hazards and Environment (IMHE) under the CAS, and the Sichuan Dagu Glacier Administration Bureau.
More than 100 glaciologists, climate policy experts and representatives of international organizations from more than 10 countries including China, Tajikistan, Kyrgyzstan, the United States and the United Kingdom, attended the conference online and offline, and had in-depth dialogues on the scientific challenges and international cooperation in global glacier protection.
"Because of global warming, glaciers around the world are generally melting. For example, the latest research data released last month showed that the annual loss of global glaciers, if converted into water equivalent, is 273 billion tons. The public can clearly see that the glaciers are shrinking rapidly and disappearing rapidly," said Kang Shichang, director of the IMHE.
Global experts gather in Sichuan to respond to UN glacier initiative
