Reggae artist praises Zimbabwe Gold currency in new song

Reggae artist Ras Caleb’s new hit song “Zig Mari” has taken Zimbabwe by storm following the introduction of the country’s newest currency, the Zimbabwe Gold (ZiG). The catchy tune has received widespread airplay on state television and radio, earning the musician a car and $2,000 in greenbacks from a businessman with close ties to the ruling party and President Emmerson Mnangagwa.

Despite the promotional efforts by senior officials from the Reserve Bank of Zimbabwe and the ruling ZANU-PF party, the ZiG is facing an uphill battle against public mistrust and structural barriers. On the black market, $1 can be exchanged for up to 17 ZiGs, highlighting the challenges the new currency faces.

The government has responded with a crackdown on street currency dealers, arresting over 200 individuals accused of flouting foreign currency exchange regulations. The crackdown has forced many dealers to go underground, using social media platforms to connect with clients.

Despite the government’s efforts, many businesses still prefer to accept U.S. dollars over the ZiG, leading to continued demand for the greenback. Economists and business groups have warned that using force to prop up the new currency is unlikely to build confidence in the ZiG.

For now, the allure of the U.S. dollar remains strong in Zimbabwe, with many citizens opting to use it for everyday transactions like rent and groceries. The government is working on mechanisms to increase access to dollars for small transactions, but the lack of faith in the local currency may continue to drive demand for the greenback.

In a country with a long history of monetary instability, the success of the ZiG remains uncertain. Economists stress the importance of building public confidence in the new currency to reduce reliance on the black market and stabilize the economy.

As Zimbabwe navigates the challenges of introducing a new currency, the future of the ZiG remains uncertain amidst the continued demand for the U.S. dollar.