[[{“value”:”Zimbabwe has introduced a new gold-backed currency called ZiG – the name stands for “Zimbabwe Gold”. It is the latest attempt to stabilise an economy that has lurched from crisis to crisis for the past 25 years. Unveiling the new notes, central bank governor John Mushayavanhu said the ZiG would be structured, and set at
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Zimbabwe has introduced a new gold-backed currency called ZiG – the name stands for “Zimbabwe Gold”.
It is the latest attempt to stabilise an economy that has lurched from crisis to crisis for the past 25 years.
Unveiling the new notes, central bank governor John Mushayavanhu said the ZiG would be structured, and set at a market-determined exchange rate.
The ZiG replaces a Zimbabwean dollar, the RTGS, that had lost three-quarters of its value so far this year.
Annual inflation in March reached 55% – a seven-month high.
Zimbabweans have 21 days to exchange old, inflation-hit notes for the new currency.
However, the US dollar, which accounts for 85% of transactions, will remain legal tender and most people are likely to continue to prefer this…
He committed to ensuring that the amount of local currency in circulation was backed by equivalent value in precious minerals – mainly gold – or foreign exchange, in order to prevent the currency losing value like its predecessors.
Here is the full story, file under “less than fully credible.” That said, I do think that many of the important monetary innovations of the future are likely to come in Africa.
The post Zimbabwe launches new gold-backed currency appeared first on Marginal REVOLUTION.
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