Gold-backed ZiG climbs most this year as Zimbabwe reserves surge

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Gold-backed ZiG climbs most this year as Zimbabwe reserves surge

7:09 CAT | 07 Jul 2025

File photo: Bloomberg

Zimbabwe’s gold-backed ZiG posted its best single-day gain against the dollar this year, boosted by surging bullion output and improved foreign currency reserves.

The currency strengthened 0.2% on Friday to trade at 26.89 against the dollar, according to data posted on the central bank’s website. That is only its 12th day of appreciation against the US currency this year.

Gold output climbed almost 46% to 20 104 kilograms in the first six months of the year, the nation’s sole bullion refinery, Fidelity Refineries said in a statement Friday. In June it jumped 63% compared with a year earlier. The rise has bolstered foreign reserves threefold, according to the central bank.

The Reserve Bank of Zimbabwe last month said it held 3.4 tons of gold in its vaults, more than double the 1.5 tons it stored when the currency debuted in April last year. The ZiG is the nation’s sixth attempt at having a stable local currency in 16 years.

The International Monetary Fund recently noted the ZiG’s relative stability in contrast to its predecessor, the Zimbabwean dollar, and signalled support for its eventual adoption as the sole currency. The dollar still dominates everyday commerce in the southern African nation.

Source: Bloomberg