Zimbabwe's gold-backed currency, ZiG, has lost nearly half its value in less than six months. The Reserve Bank of Zimbabwe (RBZ) devalued the currency by 43% in September, citing widening gaps between official and unofficial exchange rates. Despite efforts to stabilize the currency, many small businesses and individuals continue to opt for the US dollar due to lack of trust.
Experts point out that the government's decision to retain a multicurrency system has contributed to the depreciation. However, others argue that rushing to make the system a monocurrency one could cause further hardships. The RBZ aims to use only ZiG by 2026, but confidence in the currency remains low.