In a significant move inspired by the BRICS nations’ de-dollarization agenda, Zimbabwe launched a new gold-backed currency, the ZIG, earlier this year. This strategic financial innovation, unveiled in April 2024, is a bold step aimed at reducing the reliance on the US dollar within the country. The introduction of the ZIG marks a pivotal shift in Zimbabwe’s economic policy as it seeks to regain monetary sovereignty and stabilize its economy through the backing of a precious metal.
The ZIG has quickly gained traction across Zimbabwe, with 40% of all payments now being initiated in this new currency by the citizens. The rapid adoption of the ZIG underscores the growing confidence among Zimbabweans in a currency that is underpinned by tangible assets rather than fiat money. This shift is not only a reflection of the citizens’ desire for a stable and secure financial system but also aligns with the broader BRICS strategy of reducing dependency on the US dollar.
Moreover, the Zimbabwean government has taken this initiative a step further by settling 80% of its transactions in the gold-backed ZIG. This decisive move mirrors the playbook of BRICS, where the alliance encourages developing nations to utilize local currencies to fortify their economies. By promoting the use of the ZIG, Zimbabwe is actively participating in the BRICS-led push to make the US dollar a secondary currency on the global stage.
The success of the ZIG could have far-reaching implications, not just for Zimbabwe but for other nations exploring alternatives to the US dollar. This development comes at a time when the BRICS bloc is increasingly advocating for a multipolar currency system that empowers local economies and diminishes the dominance of the US dollar.
In a related development, Ghana Considers Backing Cedi with Gold, Following BRICS De-Dollarization Ideals. This potential move by Ghana signals a growing trend among developing nations to explore gold-backed currencies as a means of strengthening their financial independence. By considering such a strategy, Ghana is aligning itself with the broader BRICS vision of creating a diversified and resilient global financial system.
The introduction of Zimbabwe’s ZIG and the potential adoption of similar currencies by other nations suggest that the BRICS de-dollarization agenda is gaining momentum. As more countries consider alternatives to the US dollar, the global financial landscape could witness a significant transformation in the coming years.
