In a bold move to stabilize its runaway economy, Zimbabwe’s new Reserve Bank Governor, Mr John Mashayavanhu, announced the transition from the RTGS-based Zimbabwean Dollar to the new gold reserves backed ZiG currency, a decision that will in no doubt profoundly affect the nation’s women and girls. The Reserve Bank of Zimbabwe’s introduction of the gold-backed ZiG aims to curb the rampant inflation that has plagued the country for years.
For women and girls, the economic landscape has been particularly challenging. The RTGS Dollar’s depreciation by 75% this year alone has eroded their purchasing power, making basic necessities like sanitary products and foodstuffs increasingly unaffordable. The new ZiG, is pegged at approximately US$0.06, which the government of Zimbabwe lays as the basis for hope for price stability.
However, the transition is not without its pitfalls. The conversion of the existing Zimbabwe dollar balances to ZiG has effectively reduced their value, leaving many families, often managed by women, grappling with diminished financial resources. Already the impulsive move has led to banks and mobile money service providers like Ecocash and One Money suspending their services over the weekend, leaving thousands of unsuspecting citizens without means to transact and purchase basic commodities over the past weekend. As such, in the days and weeks to come, it’s expected that this new policy could lead to a temporary increase in the cost of living as the market adjusts, potentially exacerbating the struggles of those already living on the fringes of the country’s economy.
The impact on education is also a concern. Girls’ school attendance could be at risk if families are unable to afford fees and uniforms amid currency fluctuations. Moreover, women entrepreneurs, who have been pivotal in sustaining households, face uncertainty as they navigate the new and uncertain economic terrain. Women already battling to keep businesses afloat in a difficult financial terrain now also have to contend with the uncertainty of their financial standing as debts that had been pegged in RTGS terms have to now be converted into ZiG currency.
Yet, there is cautious optimism. The multi-currency system, with the US dollar accounting for 85% of transactions, remains in place, providing some buffer during the transition. If the ZiG succeeds in bringing stability, it could foster an environment where women and girls thrive, with better access to healthcare, education, and economic opportunities.
The move has sparked a mixture of hope and skepticism among women who have taken to social media to express their concerns and aspirations. One woman tweeted, “Hoping for stability with the new ZiG currency. We need positive change for our businesses to thrive!” reflecting the cautious optimism many feel about the potential for economic improvement.
Conversely, another user shared, “Switching to ZiG won’t fix everything overnight. We’ve been here before, and promises were broken. Actions speak louder than words,” highlighting the lingering doubts stemming from past experiences with currency changes in Zimbabwe.
These sentiments underscore the complex emotions surrounding the ZiG’s rollout, as women in Zimbabwe await tangible benefits from this economic overhaul. The true impact of the new currency on women’s daily lives remains to be seen as the nation navigates this significant transition. The outcome will depend on the implementation of gender-sensitive economic policies and the resilience of Zimbabwe’s women and girls in the face of change.
