Financial reporting implications of Zimbabwe’s new ZiG currency
Zimbabwe has introduced a new currency known as the ZiG which is short for Zimbabwean Gold. The difference between this currency and its predecessors is that its value is linked to the gold price. The currency started trading in early April and it remains to be seen whether this new batch of notes will be the solution to the country’s longstanding currency problems.
There are multiple companies in South Africa with operations in Zimbabwe and they will have questions as to the impact of the new currency on their financial reporting. There are four fundamental questions that arise.