2024-04-07 15:54:52
Zimbabwe's Central Bank Unveils Revolutionary 'Structured Currency' Backed by Gold and Forex In a bold move to stabilize its struggling economy, the Reserve Bank of Zimbabwe (RBZ) has bid farewell to its old currency and introduced a
game-changing structured currency. This new kid on the block, known as ZIG, is backed by a diverse range of foreign exchange assets, with
gold taking center stage.
The RBZ's new Governor, John Mushayavahu, promises that ZIG banknotes will be
fully convertible into the reserve currency whenever needed. It's a clear sign that Zimbabwe is ready to embrace financial innovation and adapt to the demands of a globalized world.
Mushayavahu highlights the country's
strong macroeconomic fundamentals, including a consistent surplus in the balance of payments and a thriving mining sector. These factors provide a solid foundation for ZIG's success and inspire confidence in its value.
While the multiple currency system will continue, local banks will soon begin converting existing Zimbabwe dollar balances into ZIG at rates influenced by the interbank exchange rate and the
price of gold. It's an exciting step towards streamlining Zimbabwe's monetary landscape.
To ensure ZIG's stability, the RBZ will keep its vaults stocked with a
diverse basket of reserves, comprising not only foreign currencies but also precious metals like gold. This strategic move aims to safeguard against volatility and bolster trust in the new currency.
As part of this comprehensive monetary policy overhaul, interest rates have been slashed from 130% to 20% per annum. While ZiG depositors can look forward to competitive rates, those with Foreign Currency Accounts (FCA) will see no change in their interest earnings.
The introduction of this innovative structured currency marks an exciting chapter in Zimbabwe's economic journey. With gold and forex as its pillars, ZIG aims to navigate the choppy waters of global finance with confidence and resilience.
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