“Zimbabwe Unveils Gold-Backed Currency: Introducing ZiG”

CNTLIVE AUDIO

"Zimbabwe Unveils Gold-Backed Currency: Introducing ZiG"

Play Episode Pause Episode

Mute/Unmute Episode Rewind 10 Seconds 1x Fast Forward 30 seconds

00:00 / 1:55

Acast YouTube

RSS Feed

Share

Link

Embed

Zimbabwe is taking bold steps in its economic recovery journey with the introduction of a new gold-backed currency named ZiG.

Announced by Central bank governor John Mushayavanhu, ZiG is poised to bring structure and stability to the country’s monetary system, with its exchange rate determined by the market.

An acronym for Zimbabwe Gold, ZiG marks the nation’s latest endeavor to break free from the economic turbulence that has plagued it for a quarter-century.

While the US dollar continues to dominate transactions, constituting 85% of all trades, ZiG notes will be issued in various denominations, ranging from 1 to 200. Moreover, to address the scarcity of US coins, Zimbabwe will also introduce coins alongside the new currency, alleviating the inconvenience of receiving change in alternative items like sweets or pens.

As part of the transition, Zimbabweans have a 21-day window to exchange their old, inflation-ridden notes for the new currency. Governor Mushayavanhu emphasized the immediate implementation of ZiG, mandating banks to convert existing Zimbabwe dollar balances to the newly introduced currency.

This move comes as the Zimbabwean dollar has experienced a staggering 75% depreciation this year alone. Over the years, Zimbabwe has explored various avenues to stabilize its currency, including the infamous period of printing ten-trillion-dollar notes amidst hyperinflation.

With the introduction of ZiG, Zimbabwe aims to usher in a new era of economic resilience and financial confidence, anchored in the stability of gold-backed currency.