By Staff Reporter
THE Reserve Bank of Zimbabwe (RBZ) has launched a new gold backed currency in a bid to end runway inflation.
The new local currency called Zimbabwe Gold (ZiG) is in quarter, half, 1, 2, 5, 10, 20, 100 and 200 denominations.
The ZiG will be replacing the old ZW$ and the starting rate to be gazetted next week will be US$1 is equivalent to ZiG13.56.
The incoming RBZ governor John Mushayavanhu presented the monetary policy Friday where he ordered banks to convert their systems to the ZiG currency.
“With effect from today, banks shall convert the current Zimbabwe dollar balances to ZiG. Zimbabweans have 21 days to exchange Zim dollar notes for ZiG.
“The ZiG will circulate with other currencies in the basket,” he said.
Mushayavanhu added that the objective is to promote simplicity, certainty, and predictability in Zimbabwe’s financial landscape.
Over the past year, the Zimbabwean dollar has depreciated by nearly 100 percent relative to the US dollar.
Officially, on Friday, it was trading at approximately 30,000 units against the US dollar, while on the black market, it was valued at 40,000 units, as reported by Zim Price Check
