Zimbabwe introduces new gold currency to tackle inflation

-Orders conversion of old currency within 21-days

By Samuel Ogunsona

The Government of Zimbabwe has launched its new currency backed by gold as part of her effort to tackle high rate of inflation and stabilize the country’s economy.

In a statement by the governor of Zimbabwe’s Reserve Bank, John Mushayavanhu, made available to Irohinodua, said the new Zim Gold(ZiG) would be backed by foreign currencies.

However, Zimbabweans has been told to convert their old cash into new money within 21-days.

Zimbabwe, the country which was previously known as Southern Rhodesia (1898), Rhodesia (1965) and Zimbabwe Rhodesia (1979) has been going through period of currency instability since 2008.

Zimbabwean banknotes ranging from 10 dollars to 100 billion dollars was printed within a period of one year which magnitude of the currency signifies the extent of their hyperinflation.

However, The Reserve Bank of Zimbabwe blamed the hyperinflation on economic sanctions imposed by the United States of America, the IMF, and the European Union.

These sanctions affected the government of Zimbabwe, asset freezes and visa denials targeted at 200 specific Zimbabweans.

According to the Reserve Bank of Zimbabwe, announced that the launch of the new currency is slated for April 8, 2024.

The new currency comes as the current Zimbabwe dollar that has declined against the U.S. dollar. It is currently the second worst-performing currency against the greenback this year.

“We want a solid and stable national currency in this country,” said Central Bank Governor John Mushayavanhu during the press conference. “It does not help to print money. Certainly, under my watch, it is not going to happen.”

The ZiG would make it the sixth currency Zimbabwe government has introduced since 2008.