ZiG (short for Zimbabwe Gold) will be introduced on April 8 and will replace the devalued national dollar.
Zimbabwe is introducing a new currency, the ZiG, to replace the devalued national dollar. ZiG will be backed by gold and a basket of foreign currencies, Bloomberg reports.
It is noted that ZiG – short for Zimbabwe Gold – will officially go into circulation on April 8.
Also, the country’s Central Bank sets the discount rate at 20%. The previous rate of 130% was the highest in the world.
The radical step is Zimbabwe’s sixth attempt since 2008 to create a functional local currency. The International Monetary Fund estimates Zimbabwe’s inflation rate at 500 billion percent over 16 years. The local currency has become almost worthless.
At one time in Zimbabwe, the dollar earned quadrillions of local currency.
Let us recall that in May last year, Zimbabwe introduced a digital currency backed by gold.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.