World's newest currency

The ZiG, or “Zimbabwe Gold” recently took the title of “World’s Newest Currency“

The ZiG (“Zimbabwe Gold”) launched in April 2024 as Zimbabwe’s latest attempt to fix its long-running currency crisis. It replaces the old Zimbabwean dollar after years of hyperinflation and instability, with the goal of restoring trust in the monetary system.

Gold-backed, but not convertible: The Zimbabwean government backs the ZiG with gold, diamonds and foreign reserves valued at around US$700 million, but holders can’t exchange ZiG notes for gold. Instead, the central bank promises to limit the supply of ZiG to match its gold and reserve holdings. They hope this will instill enough trust without actually offering convertibility. The success of this approach depends on public trust in the government’s currency management—something that has been weak in Zimbabwe.

Currency reset for chronic hyperinflation: Since the early 2000s, a series of Zimbabwean currencies have failed due to excessive money printing and economic mismanagement, concluding in hyperinflation. The ZiG was supposed to mark a reset, converting old balances and aiming for “simplicity and predictability” in daily transactions.

Inflation and skepticism remain: Despite initial optimism, the ZiG has also suffered rapid depreciation and high inflation—over 90% annually as of mid-2025. Even with strict policies, the public remains wary, and dollars still dominate informal markets. Major devaluations and volatile prices show that being gold-backed isn’t a cure-all when people don’t trust the central bank’s discipline.

Key takeaway: The ZiG is an interesting monetary experiment, testing a currency can be “gold-backed” without being gold-convertible. Success ultimately depends on trust —something that can’t be fixed by reserves alone.