#ZIG Zimbabwe Introduces New Gold-Backed Currency: ZiG
Zimbabwe has launched a new currency called ZiG, which stands for "Zimbabwe Gold." This move aims to help stabilize the country's economy, which has been facing troubles for the past 25 years.
The new banknotes, ranging from 1 to 200, are backed by gold. The central bank governor, John Mushayavanhu, revealed that the value of ZiG will be determined by the market.
This currency replaces the previous one, RTGS, which had lost a significant amount of its value. Inflation has been high, reaching 55% in March.
People have 21 days to exchange their old, inflation-affected notes for the new currency. However, the US dollar will still be accepted for transactions, as it is the preferred choice for most people.
The introduction of ZiG banknotes and coins aims to address the shortage of US coins, which has led to receiving change in items like sweets and pens.
Mushayavanhu assured that the amount of ZiG in circulation will be backed by gold or foreign exchange to prevent loss of value.
Zimbabweans have been wary of the central bank since the 2008 crisis when the government printed large denomination notes amid hyperinflation.
Although promises have been made to prevent overprinting, some remain skeptical about the new currency's success, emphasizing the need for government discipline.
This currency launch coincides with the country facing challenges from a severe drought.
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