Perceptions of the Zimbabwe Gold Currency (ZiG) as a Panacea to Economic Stability

Abstract

This study investigated the perceptions and reactions of Zimbabwe's economic agents regarding the Zimbabwe Gold Currency (ZiG) as a potential solution for achieving economic stability. The research employs a primary data approach, collecting information from 295 out of a possible 300 respondents through structured questionnaires administered via face-to-face interviews, town hall focus group and emails over a 14-day period. Respondents represent diverse economic sectors, including SMEs, manufacturers, informal businesses, and individual consumers, predominantly in all 3 Matebeleland Provinces which included rural and urban markets. Major findings reveal that while some economic agents especially exporters and manufacturers support the local currency for its potential to boost production and competitiveness, significant skepticism persists. Factors undermining confidence in the ZiG currency include policy inconsistency, selective usage, lack of trust in monetary authorities, and macroeconomic instability. Respondents highlighted government mismanagement of fiscal priorities, rampant speculation, and limited efforts to formalize the economy as further challenges. The study identifies several policy measures to stabilize the ZiG currency, such as engaging the private sector, promoting policy consistency, prioritizing developmental expenditure, addressing debt overhang, and eliminating selective administrative enforcement. The findings underscore the necessity of a multistakeholder approach to restore economic fundamentals and build confidence in the currency. These insights contribute to the discourse on monetary reforms and economic stability in Zimbabwe.