Sat. Jul 20th, 2024

Zimbabwe has announced the launch of its new currency, called “Zig”, which relies on gold reserves and a basket of foreign currency.

Reserve Bank of Zimbabwe Governor John Mushyavanho said the move was in response to the sharp depreciation of the Zimbabwean dollar, which has seen a decline of more than 70 percent since January.

Mushayavanho set a three-week period for citizens to exchange old banknotes for the new currency, with actual circulation scheduled to begin next Monday.

It is noteworthy that the inflation rate rose from 26.5% in December last year to 55.3% in March, which prompted many traders to rely on the US dollar in daily trading.

The launch of the new currency is the latest in a series of measures taken by the Zimbabwean government in recent years, from the historic collapse of the Zimbabwean dollar in 2009, to the relaunch of the local currency in 2016 and the policy changes related to the currency implemented in the following years.

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