Zimbabwe introduces another new currency

By Jeffrey Moyo

HARARE, Zimbabwe (AA) – Amid soaring inflation, Zimbabwe’s new Central Bank governor on Friday introduced a new gold-backed currency known as Zimbabwe Gold (ZiG).

This is not the first time Zimbabwe has switched currencies.

In 2008, as inflation walloped the country’s local currency at the height of the country’s 500 billion percent inflation, authorities ordered a departure from the use of the local currency, switching to multiple currencies including the US dollar.

This stabilized the country’s economy for some time until the country battled shortages of dollars around 2016, forcing authorities to again switch back to the use of its own currency, introducing what became known as bond notes which then were pegged to the dollar.

The value of the local currency did not last as inflation soared, prompting authorities to introduce the ZiG.

Starting next Monday, the ZiG will be trading at a rate of 13.56 to the dollar, according to John Mushayavanhu, the new Central Bank chief.

He said Zimbabweans have 21 days to convert their old local bank notes to the latest currency.

But Mushayavanhu said they were not dumping the use of foreign currencies like the US dollar, saying instead: “The ZiG will circulate with other currencies in the basket.”