The ZiG is the country's sixth currency since independence in 1980

Zimbabwe is replacing its collapsing local currency with a new one backed by gold and foreign currencies that it hopes will be more stable and help bring down inflation, the central bank said on Friday.

The Southern African country relaunched its own currency in 2019 after a decade of dollarisation, but it struggled to win public trust and more than 80% of domestic transactions are now conducted in foreign currency.

A more than 70% slide in the Zimbabwean dollar since the start of the year pushed price rises beyond 55% in annual terms in March (ZWBCPY=ECI), opens new tab, evoking bitter memories of hyperinflation under former leader Robert Mugabe.

The new currency - called Zimbabwe Gold (ZiG) - will circulate alongside foreign currencies, central bank governor John Mushayavanhu told a press conference in the capital Harare.

The central bank also said it was "recalibrating" its main interest rate and setting it at 20%, without elaborating, a drastic cut from the previous rate of 130%.

In a monetary policy statement, the Reserve Bank of Zimbabwe said the new currency's starting exchange rate would be determined by the closing interbank exchange rate on April 5 and the London PM Fix price of gold on April 4.

The bank referred to the new currency as "structured", saying it would be "anchored by a composite basket of foreign currency and precious metals (mainly gold) held as reserves for this purpose by the Reserve Bank".

"If we implement these measures, we expect them to have an impact on inflation," Mushayavanhu told reporters.

Banks are to convert their current Zimbabwean dollar balances into ZiG with immediate effect, while people will have 21 days to exchange their old notes and coins for new ones, the monetary policy statement said.

Friday's announcements are the culmination of months of deliberations between the central bank and finance ministry on currency reforms.

The central bank also said on Friday that it had $100 million in cash and 2.52 tonnes of gold worth $185 million in reserve assets.

Reuters

🤣🤣
If they want to go by gold
Then civil war would soon start

The power that be

richeeyo:
🤣🤣
If they want to go by gold
Then civil war would soon start

The power that be

Many currencies are backed by gold...and it did not lead to civil war.
NL Einsteins...The gold standard was dropped, there are no currencies that are backed OFFICIALLY by gold anymore since Switzerland in year 2000. However, this doesn’t mean that gold or other commodities are irrelevant to their economy or currency. There are plenty of examples of countries where their wealth and currencies are able to be tracked and correlated to a specific commodity or multiple commodities. For example, The Australian Dollar is sensitive to changes in iron prices as they are the largest exporter of iron worldwide. Many countries have a currency that is closely linked to oil with currency and economic fluctuations coinciding with oil price changes and availability. These include large economies such as Canada, Russia, Columbia and Norway.
There is correlation between commodity and currency...they have an effect on a currency that can be seen and tracked even when they are not directly backed by these commodities.
The Zimbabwe ZiG is backed by both gold and foreign currencies.

Zig. Ziggy Marley

The whole Africa should adopt a single currency like Europe I believe it will help our respective economies.

Yabatech partime form is now out, will close fifteenth of next month the earlier you apply the higher you chances of admission.if interest ed call
zero eight one two four zero six four three five three .

Wrong

W

I thought obasanjo advised we contact Zimbabwe on how to combat inflation.

Goody two shoes Baba.

Let's see if this provide a solution

Way to go....

Zamfara Gold miners wont love this.

Zimbabwe ti lu'le..

May they find a way out ...Amen

When i was in LAGOS those days, there is this stench in ikeja very close to the police college. It was a smelly, toxic and muddy stench. Back then, it was popularly referred to as Zimbabwe.. .



So Zimbabwe is still the Zimbabwe of yesteryears NA wao
.

Let's see how that works out.

okay

They are about to get the American freedom
If you know you know.

I was nearly kidnapped because of a 100kg bag of GARRI that was in my car.

Garri should be among the items in first aid box.

It's been saving lives since 1902.


Anyway I laugh in Swahili 😂😂😂😂😂😂😂😂

May we not go the Zinc way tho

TUANKU:

Many currencies are backed by gold...and it did not lead to civil war.

I think he's referring to Western intervention like in Libya

No b only zig na WIG

TUANKU:

Many currencies are backed by gold...and it did not lead to civil war.

C'mon now. Aren't we past this level of consciousness already?

Whenever you hear conspiracies concerning Africa, it's not up for debate. Your only duty as an African is to notice the patterns and if you don't have anything to add, be mute.

Follow MOP on social media platforms so you can raise your consciousness and so the Nigerian naira can some day be backed by refined oil.

l

Mugabe ruined this once beautiful country... Zimbabwean dollar those years,chai!!!!
Nna fear white man,o

Can see Logo of RT on microPhone, and RT na Russian based News outlet.
Shows that Russia get hand for this matter.

Gaddafi of Libya tried this, we know how it ended. hopefully, this president, who means well, have equally secured himself and his country very well. WESTern powers no dey like make anyOne try deDollarize.

But wait Ooo, Russia gan sef no well. na dem cause all these deDollarization

Omo.. Tis one confuse me.

I wish them goodluck

I hope the currency no turn to state of naira right now

Chai..




Dollarization of the Zimbabwean economy.

Lobartorn!!

Dollar has been sucking many African economies!!





This is Ewu Gambian situation.

Dangote fit bail that country out anytime anyday.

how can a whole country be backed by only $100 million cash and $185 million gold reserve making a total of $285 million

Obj in the mud

What's the difference between the gold n gun... All na G