Government Admits ZiG Struggles With Fuel Payments

Deputy Finance Minister Kudakwashe Mnangagwa has publicly acknowledged that the Zimbabwe Gold (ZiG) currency is failing to gain the necessary traction for critical national payments. The currency, which is backed by gold and foreign reserves, currently accounts for less than half of all transactions in the country. This admission underscores a deepening crisis of confidence among market participants who remain hesitant to utilize the local unit for high-value imports like fuel. The government’s struggle to stabilize the currency impacts national inflation and complicates broader monetary policy objectives. As the ZiG faces these headwinds, the administration is grappling with the reality that the unit is a difficult sell to a public accustomed to foreign currency dominance.