{"id":40510,"date":"2025-06-09T11:36:35","date_gmt":"2025-06-09T11:36:35","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/06\/09\/whats-next-for-the-zimbabwe-zig-exchange-rate-in-2025\/"},"modified":"2025-06-09T11:36:35","modified_gmt":"2025-06-09T11:36:35","slug":"whats-next-for-the-zimbabwe-zig-exchange-rate-in-2025","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/06\/09\/whats-next-for-the-zimbabwe-zig-exchange-rate-in-2025\/","title":{"rendered":"What\u2019s next for the Zimbabwe ZiG exchange rate in 2025?"},"content":{"rendered":"
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The Zimbabwe ZiG currency has remained under pressure this year despite some bullish tailwinds for the economy. The official USD\/ZWG exchange rate was listed at 27.6 by the central bank, while the black market rate stood at 40. <\/p>\n

This performance marks a major deterioration for a currency that started trading at 13.56 against the US dollar in April last year. <\/p>\n

Zimbabwe economic tailwinds<\/h2>\n

Zimbabwe\u2019s economy is facing some major tailwinds this year. First, the prices of its top exports are in a strong rally this year. Gold price surged<\/a> to a record high, and analysts are optimistic that it will continue soaring in the coming months. Some experts see it rising to $4,000<\/a>. <\/p>\n

Platinum price has also jumped<\/a> to the highest point since June 2021. It has soared by over 40% from its lowest point this year, and the trend may continue soaring, with the next point to watch being at $1,337. <\/p>\n

Similarly, palladium price soared to $1,045, its highest point since November 4. This is notable since these are some of Zimbabwe\u2019s biggest exports. <\/p>\n

Second, Zimbabwe expects that tobacco will resume growth this year. In a report in March, the government predicted that tobacco sales would jump by 21% this year as it recovers from last year\u2019s drought. It expects the crop production to be 280 million kilograms after plummeting to 230.9 million last year.<\/p>\n

Zimbabwe also expects that the country will have a 340% increase in crop production this year. Its food reserves have remained steady in the past few months.<\/p>\n

Further, from a macro level, the government is counting on a bridge loan of about $2.6 billion to help it repay loans to institutions like the World Bank and the AfDB. While some countries are non-committal, the government hopes that it will secure the funds by next year.\u00a0<\/p>\n

Why the Zimbabwe ZiG currency has crashed<\/h2>\n

The Zimbabwe ZiG has crashed for several reasons. First, despite the central bank\u2019s efforts, Zimbabwe is still a dollar-based economy, with the currency being used in over 80% of transactions. <\/p>\n

Second, many Zimbabweans are, rightfully, afraid of holding a local currency following the past implosions. The country has had five currencies in the past decades, all imploding. <\/p>\n

Fears that the gold-backed ZiG currency would crash were confirmed last year when the central bank devalued the currency by 40%, leading to instant losses among those who held it. <\/p>\n

The fact that Zimbabweans are avoiding the ZiG is notable because of the high interest rates the central bank is offering. It raised interest rates to 35%, creating an instant carry trade opportunity, where investors borrow money in a low-interest-rate currency to invest in a higher-yielding one. <\/p>\n

In Zimbabwe\u2019s case, one can borrow the US dollar and pay about 5% and then invest in the ZiG, generating a 30% return. In a recent note, one analyst said that monetary policy will not fix the Zig, saying<\/a>:<\/p>\n

\n

\u201cMonetary policy won\u2019t fix Zimbabwe\u2019s problems and the government needs to generate more revenue and control deficit spending to get the economy on track.\u201d<\/p>\n<\/blockquote>\n

Read more: Here\u2019s why the Zimbabwe ZiG currency faces a grim future<\/a><\/p>\n

Summary<\/h2>\n

The Zimbabwe Central Bank introduced the ZiG in April 2024 as it sought to create a stable currency. The fear, however, is that most people and businesses will avoid the currency since they have lost money before.<\/p>\n

The post What\u2019s next for the Zimbabwe ZiG exchange rate in 2025?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Zimbabwe ZiG currency has remained under pressure this year despite some bullish tailwinds for the economy. The official USD\/ZWG exchange rate was listed at 27.6 by the central bank, while the black market rate stood at 40.  This performance marks a major deterioration for a currency that started trading at 13.56 against the US <\/p>\n","protected":false},"author":1,"featured_media":40511,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-40510","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/40510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=40510"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/40510\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/40511"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=40510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=40510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=40510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}