Zimbabwe has launched a new gold-backed currency called ZiG – Zimbabwe Gold – in a bid to stabilise an economy that has gone from crisis to crisis over the past 25 years.
Speaking while unveiling the new notes, John Mushayavanhu, Central Bank Governor said the ZiG would be structured, and set at a market-determined exchange rate.
The Zimbabwean dollar, known as the RTGS, was replaced with the ZiG after it had lost 75% of its value this year.
The new ZiG banknotes come in denominations of between 1 and 200.
In order to address the lack of US coins, which has resulted in people receiving change in the form of candies, tiny chocolates, and pencils, coins will also be introduced.
According to Mr. Mushayavanhu, banks are required to convert their existing Zimbabwe dollar balances to the Zimbabwe dollar (ZiG) as soon as possible.
In order to keep the local currency from depreciating like its forebears, he pledged to make sure that its face value was guaranteed by an equivalent amount of foreign exchange or valuable minerals, primarily gold.
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