Withdrawal limits as Zimbabwe releases new currency

Zimbabwe has introduced new banknotes and coins, set to commence on Tuesday, as all banks have received the local currency from the central bank for nationwide distribution.

The highest denomination of the new currency, known as Zimbabwe Gold or ZiG, will be the 200 ZiG note, valued at approximately $15.

In accordance with directives from authorities, individuals will be permitted to withdraw up to ZiG 3,000 per week, while companies can withdraw up to ZiG 30,000.

Reports from local media suggest that there are no cash withdrawal limits for institutions such as parliament, courts, and international organizations.

This move to introduce a new currency comes as the country grapples with escalating inflation, marking the latest effort to stabilize the economy.

However, early indications reveal challenges for the new currency. A digital version has already experienced a 25% depreciation against the US dollar on the black market.

This marks the third currency to be introduced in Zimbabwe within the past decade. The ZiG is backed by gold and foreign currency reserves, a measure aimed at safeguarding its value, according to statements from the central bank.