Zimbabwe will convert its annual budget to its gold-backed currency, the ZiG, which went into circulation last month, Finance Minister Mthuli Ncube said.

Known as the Zig, which stands for “Zimbabwe gold”, it was introduced a month ago and replaces the digital RTGS currency and cash “bond notes”.

Out with the Zimbabwe dollar, in with the ZiG. Zimbabwe on Tuesday started circulating a new currency to replace one that has been battered by depreciation and often outright rejection by the people.

Zimbabwe will seek full convertibility of its new currency, the ZiG, as a way to further support the unit and protect it from collapse, according to Mthuli Ncube, the Finance Minister.

Cathy Buckle reflects on a tumultuous fortnight where the government's ZiG currency announcement led to a banking collapse.

ZiG seeks to remonetise the economy to restore investor confidence and this will be done through restoring confidence in the currency itself,' Reserve Bank of Zimbabwe Deputy Governor Innocent Matshe said.