Zimbabwe’s central bank has launched a new “structured currency” backed by gold, as it seeks to tackle sky-high inflation and stabilize the country’s long-floundering economy.
The new currency – called Zim Gold (ZiG) – will be backed by foreign currencies, gold and precious minerals, John Mushayavanhu, the governor of Zimbabwe’s Reserve Bank, told reporters in the capital Harare on Friday.
Zimbabweans have 21 days to convert their old cash into new money, Mushayavanhu said.
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Mushayavanhu said the ZiG would circulate alongside a basket of other currencies. He said the central bank would also introduce a market-determined exchange rate.
Mushayavanhu said presenting the new banknotes that come in eight denominations ranging from one to 200 ZiG: “With effect from today banks shall convert the current Zimbabwe dollar balances into the new currency.The move is aimed at fostering “simplicity, certainty, [and] predictability.“
The new notes feature a drawing of gold ingots being minted, as well as Zimbabwe’s famous Balancing Rocks, which already appeared on the old ones.
Inflation in Zimbabwe!
The Zimbabwean dollar has lost almost 100 percent of its value against the US greenback over the past year. On April 5 2024, it was officially trading at about 30,000 against its more coveted US counterpart – and at 40,000 on the black market, according to tracker, Zim Price Check.
Since its re-introduction in 2019, after being abandoned a decade earlier due to hyperinflation, the Zimbabwean authorities have made several attempts to stabilize the Zimbabwe dollar.
These efforts have included initiatives such as introducing gold coins and digital tokens backed by bullion, incidentally also known as ZiG, which was introduced as a means of exchange in October 2023.
