Why Zimbabwe’s ZiG is tanking

A man shows new Zimbabwe gold-backed currency after withdrawing from a local bank in Harare on April 30, 2024. Reuters

Zimbabwe has lost more than $3 billion in potential revenue due to exchange rate distortions in three years, in a major indication of the huge costs Harare is paying for having an unstable currency, World Bank research has shown.

The Southern African country this year made a sixth attempt to re-establish its own currency after it was forced into dollarisation 15 years ago.