Zimbabwe's Finance Minister Mthuli Ncube has ordered all government agencies to accept payments in the newly introduced gold-backed currency amid reports of acute shortage.

Mr Ncube in a statement said the Zimbabwe Gold (ZiG), introduced last month, was now the official unit of exchange for transactions in the country.

He said the government would soon introduce regulations to ensure businesses stick to the official rate, which would be freely determined by the banking system based on demand and supply.

“All ministries, departments, and agencies (MDAs) and the private sector alike are hereby advised to accept and recognize the ZiG as the official currency for all financial transactions, and payment for all goods and services, effective immediately,” the minister added.

The currency was introduced in a move to stabilize the country's economy, which has been grappling with escalating inflation.

But despite the new notes starting to circulate late last month, acute change shortages and scarcity have remained, the New Zimbabwe news website reported.

It is the third currency to be introduced in Zimbabwe within the past decade.