Emmerson Mnangagwa, the President of Zimbabwe, has pledged to safeguard the nation’s new currency, the ZiG, from potential collapse.

Zimbabwe's President Emmerson Mnangagwa addressed the nation on Wednesday, pledging to implement corrective measures aimed at safeguarding people's incomes following a significant decline in the country's newly introduced gold-backed currency. This decline occurred just five months after the currency, known as the ZiG (short for Zimbabwe Gold), was launched.

The ZiG was devalued by 43% last Friday, having previously lost nearly 47% on the black market. In his address to parliament, Mnangagwa expressed concern over the resurgence of parallel market activities, which he attributed to speculative tendencies. He assured the public that corrective measures are being put in place to protect Zimbabweans from potential disruptions.

Since the devaluation, the ZiG has further weakened, falling from a rate of 24.3902 on Friday to 25.2824 on Wednesday. On the black market, it has decreased to 32 per US dollar.

In his speech, Mnangagwa emphasized that the devaluation of the ZiG would provide "greater flexibility" and encourage individuals holding foreign exchange to engage in trading on the official market. He reaffirmed the government's commitment to supporting the currency by allocating 50% of royalties to build reserves.

The introduction of the ZiG marks Zimbabwe's sixth attempt at establishing a stable currency within a span of 15 years, a period marked by hyperinflation under the leadership of former president Robert Mugabe.

Following a meeting with officials from the central bank, the Bankers Association of Zimbabwe voiced concerns on Wednesday that last week's devaluation would likely lead to increased prices and undermine public confidence in the currency.