This marks the first official year-on-year inflation update since the introduction of the Zimbabwe Gold (ZiG) currency in April 2024.

The ZiG, launched with hopes of stabilising the economy and restoring confidence in the country’s monetary system, has faced significant challenges. Since its launch, the currency has depreciated by nearly 50%, according to the latest exchange rate data from the Reserve Bank of Zimbabwe published this Friday.

Economists caution that the steep decline in the ZiG’s value could exacerbate inflationary pressures and continue to erode the purchasing power of ordinary Zimbabweans, adding to the economic hardships many are already facing.

--ChannelAfrica--