HARARE, May 10 – In a significant move to stabilize its economy, Zimbabwe has announced penalties for businesses that do not adhere to the official exchange rate for its new gold-backed currency, the Zimbabwe Gold (ZiG). This development comes as the government intensifies efforts to establish the ZiG as a stable monetary unit amidst ongoing economic challenges.

Under the new regulations, any business entity using an exchange rate that exceeds the set official rate of 13.5 ZiG per U.S. dollar will face a substantial fine of 200,000 ZiG (approximately $14,815). This policy was detailed in a government notice that surfaced on Thursday, highlighting measures against what is described as civil infringement for overcharging in foreign currency terms.

Since its introduction in early April, the ZiG has been at the center of Zimbabwe's strategy to correct its volatile economic environment.

The government has actively pursued illegal currency traders and is now enforcing the ZiG as the mandatory currency for all transactions, a decision underscored by recent economic directives from Zimbabwe’s Treasury.

The enforcement follows widespread resistance from both formal and informal sectors, with reports of businesses charging premiums or outright rejecting the new currency.

This marks Zimbabwe’s fourth attempt within a decade to establish a local currency, following the rapid devaluation of the Zimdollar, which was abandoned last month after losing 70% of its value since January.