Zimbabwe says it will re-launch its currency for a sixth time next week, in a bid to reign in inflation after the latest collapse of the Zimbabwe dollar.
New Reserve Bank of Zimbabwe Governor John Mushayavanhu said the Zimbabwe Gold (ZiG), would replace the last incarnation of the Zimbabwe dollar and would be backed by a select group of foreign currencies, gold, and other precious metals the country produces. The new currency will be introduced next Monday at 13.56 per U.S. dollar.
“With effect from 5 April 2024, banks shall convert the current Zimbabwe dollar balances into the new currency which shall be called Zimbabwe Gold to foster simplicity, certainty, and predictability in monetary and financial affairs,” the central bank said in a monetary policy statement. “The new currency will co-circulate with other foreign currencies in the economy.”
The move aims to foster “simplicity, certainty, [and] predictability” in Zimbabwe’s financial affairs, he added, presenting the new banknotes that come in eight denominations ranging from one to 200 ZiG.
The new notes feature a drawing of gold ingots being minted and Zimbabwe’s famous Balancing Rocks, which already appeared on the old ones.
Zimbabweans have 21 days to convert their old cash into new money, Mushayavanhu said.
Zimbabwe’s dollar had lost almost three-quarters of its value against the dollar since a relaunch last year, stoking inflation which was measured at 55.3 percent in March versus 47.6 percent the month before. The country has battled to tame inflation since it hit a record 500 billion percent in 2008 when it was forced to abandon the Zimbabwe dollar.
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