ZIMBABWE’S NEW ZiG CURRENCY IS KILLING BUSINESSES

Zimbabwe’s new currency called ZiG is not helping the economy. It is now making things worse. The government said ZiG is backed by gold and foreign money, but that is not helping. Since ZiG was introduced in April, it has caused many problems. Now, many businesses, especially shops, are suffering.

Shop owners are afraid they will have to shut down. This is because the money is not stable. The economy is facing inflation, high interest rates, and general confusion. The government has set a fixed exchange rate, but in the market, people are using a different rate. This is creating unfair prices. It is hard for businesses to survive in this situation.

The government says one US dollar is equal to ZiG13.8. But on the black market, one US dollar is worth ZiG30. This big difference is a big problem. ZiG has already lost 49% of its value since April 5. That means the money is losing its power very fast. The government says inflation is only 3.7%, but real experts say it is more than 800%. That makes Zimbabwe one of the worst countries in the world for inflation.

Another problem is the money supply. There is 283% more money in the system now than before. But people are not spending it. This means the economy is not moving. At first, the government tried to control how much money was out there. But this just slowed everything down.

There are not enough ZiG notes. Because of this, people are still using the US dollar. President Mnangagwa says he wants people to stop using the US dollar and use ZiG only. But this will be very hard. Zimbabwe has already failed with six other types of money before. Even though the government says people can use other currencies until 2030, many do not trust ZiG anymore.

The Reserve Bank of Zimbabwe (RBZ) is led by John Mushayavanhu. He promised not to print more money. But now he is printing more anyway. This is making things worse. Inflation is going higher and higher. Prices are going up and up. Businesses cannot plan for tomorrow. They do not know how much things will cost next week. This makes it very hard for them to keep their doors open.

Big shops like OK Zimbabwe, PicknPay, and SPAR are suffering. They are forced to use the government rate of ZiG13.8 per US dollar. But in the streets, people are using the black market rate. So the shops’ prices are much higher than in informal markets. Customers are now running away from big shops and buying from informal sellers. The Retailers Association of Zimbabwe says the situation is very bad. Without help, many shops will close.

Experts say the problem is not only about money. They say the real problem is politics. Zimbabwe has too much corruption. There are no proper reforms. The government is not doing enough to fix the business environment. The economy will never improve without big changes.

Zimbabwe also owes a lot of money to other countries. Because of this, it cannot borrow money easily. Most of the money it gets comes from local loans, and these loans are very expensive. The government says it is trying to fix its relationship with the world and get help. But this is not working well either.

Right now, the ZiG currency is causing a crisis. Businesses are in danger. Shops are closing. Prices are rising. People are losing jobs. And if nothing changes, things will get even worse. The truth is, ZiG is not the answer. Without political change, Zimbabwe’s economy will not survive.