ZIMBABWE’s gold-backed currency is worth twice as much as the market thinks at least according to the Reserve Bank of Zimbabwe. Governor John Mushayavanhu says the ZiG should be trading at ZiG15 to US$1, not the ZiG25 to ZiG28 seen on the street. His reason: the country has enough gold and forex reserves to back it.
“If we wanted to buy back all the local currency that is in the market using the reserves that we have, we could do that at an exchange rate of around 15,” Mushayavanhu told Bloomberg on Friday, 18 April 2026. “The currency is undervalued by almost half.”
On paper, the numbers look solid. Since April 2024, authorities have pumped over US$1.5 billion into the forex market to defend the ZiG and close the gap between official and parallel rates. The RBZ says its mix of gold holdings and foreign currency reserves gives the ZiG stronger fundamentals than the market reflects.
But on the streets of Harare and Bulawayo, the ZiG still trades at ZiG25-ZiG28 to US$1. And that gap is where the fight is.
Social media lit up after Mushayavanhu’s comments, with many Zimbabweans questioning why the RBZ doesn’t let the market decide if it’s that confident.
“The markets determine currency weight. Why not just let it float on the market?” posted @chinyemu on X.
Others pointed to a bigger problem: access. “The Zimbabwe currency makes up 10% of transactions… a majority of Zimbabweans don’t even have access to local currency,” wrote @RefugeeEconomic.
Practical gaps fuel the doubt. “But it can’t even be used to buy fuel locally and even some other government services,” added @godietm. For many, a currency you can’t use at the pump or for passports feels theoretical, no matter what the reserves say.
The ZiG was launched as a structured, asset-backed fix to Zimbabwe’s long currency crisis. But a year later, confidence remains the missing ingredient. Economists say valuation is only half the battle — credibility is the other half.
“Big claim but markets will be the real judge,” said @ThriveTrack. Another user put it bluntly: “If the currency is truly undervalued, you’d expect capital inflows and stability… but confidence and policy credibility matter just as much as valuation.”
Analysts warn that without export growth and tighter liquidity controls, even US$1.5 billion in interventions won’t hold the line forever. The parallel market thrives on doubt. And doubt is cheap.
Mushayavanhu’s statement puts fresh pressure on the RBZ: if reserves can truly support ZiG15, why not prove it? Some are now calling for a managed float to let the market test the claim. Others fear that would trigger another slide.
For now, Zimbabwe has two exchange rates the one the Governor quotes, and the one citizens live with. Until those numbers meet, the debate over the ZiG’s “real” value isn’t going away.
