ZiG Currency Records Strongest Single-Day Gain in 2025 Amid Gold Production Boom and IMF Backing
On Friday(5th July), the ZiG appreciated by 0.2%, reaching an exchange rate of 26.89 ZiG per U.S. dollar, according to official figures released by the Reserve Bank of Zimbabwe (RBZ). This marked only the twelfth occasion in 2025 on which the ZiG has gained ground against the U.S. dollar, according to data compiled by Bloomberg.
The rally in the ZiG’s value comes in the wake of a sharp surge in national gold output. According to Fidelity Refineries—the country’s only gold refining company—gold production in Zimbabwe increased by nearly 46% in the first six months of the year, reaching a total of 20,104 kilograms. In June alone, output spiked by 63% compared to the same month last year.
This boost in gold output has had a direct impact on the country’s economic stability. The Reserve Bank of Zimbabwe reported that Zimbabwe’s foreign currency reserves have tripled in recent months, providing a critical support system for the ZiG and the broader economy. As of last month, the central bank held 3.4 metric tons of gold in reserve, a significant increase from the 1.5 tons it held when the ZiG was first launched in April 2024.
The International Monetary Fund (IMF) recently voiced its support for the ZiG, expressing hope that the currency could eventually become Zimbabwe’s exclusive legal tender under a proposed staff-monitored economic reform program.
Despite these developments, the ZiG still faces challenges in gaining public confidence. It is Zimbabwe’s sixth attempt in the past 15 years to establish a reliable national currency. Although it is officially backed by 2.5 tons of gold and USD 100 million in foreign currency reserves, widespread skepticism remains. Currently, approximately 80% of transactions in Zimbabwe are still conducted using the U.S. dollar, with the South African rand also playing a smaller role in the domestic economy.
