Zimbabwe’s central bank has unveiled a gold-backed digital currency aiming to increase the economy’s options in carrying out daily transactions and bolster the Zimbabwean Dollar (ZWL).
Already challenged with pressures to mitigate uncertainties by stocking the US Dollar, the country has suffered the impact of exchange rate instability due to the pursuit of scarce foreign currency within the economy.
As such, with the objective of easing these pressures, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya revealed the addition of the Zimbabwe Gold Backed Digital Token, known as Zimbabwe Gold (ZiG).
The initiative is in line with the Monetary Policy Committee’s resolutions from the meeting held last month, New Zimbabwe reports.
“Accordingly, the bank wishes to advise that with immediate effect from October 5 2023, ZiG will become one of the means of payment for domestic transactions, over and above its value preservation purpose.
“The value of ZiG will be at par with the value of the physical Mosi-oa-Tunya gold coin and will remain informed by international gold price,” the governor stated.
According to economist Persistence Gwanyanya, ZiG is in response to Zimbabwe’s desire to substitute the Zimbabwean Dollar.
“This confirms the fact that the ZWL on its own is inadequate to become a preservation instrument. The appetite to preserve value has, therefore, been the major driver of depreciation, prompting members of the public to offload the local currency into the US.
“So going forward, the transacting public can now offload their ZWL into the ZiG, which will play the dual function of being a transactional instrument as well as a value preservation unit which is not shaken by parallel market dynamics but gold price movements on the international market,” he added.
News you might like
Zimbabwe to announce roadmap to replace Dollars with ZiG
Zimbabwe’s cabinet has announced the approval of a plan to transition from using US dollars to the new gold-backed currency for transactions, the details of which will be presented by the country's Finance Minister, Mthuli Ncube.
posted on 07.08.2024
Zimbabwe seeks investment bank to bolster economic potential
Zimbabwe’s Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube, has urged investors to set up an investment bank in the country to capitalise on the numerous opportunities within the economy.
posted on 12.06.2024
Zimbabwe Dollar falls to record low ahead of currency announcement
The Zimbabwean currency has fallen to another all-time low as residents sought refuge in the stability of the US dollar amid speculation the central bank is on the verge of making an announcement regarding the future of the local currency.
posted on 03.04.2024
Zimbabwe to announce roadmap to replace Dollars with ZiG
Zimbabwe’s cabinet has announced the approval of a plan to transition from using US dollars to the new gold-backed currency for transactions, the details of which will be presented by the country's Finance Minister, Mthuli Ncube.
posted on 07.08.2024
Zimbabwe seeks investment bank to bolster economic potential
Zimbabwe’s Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube, has urged investors to set up an investment bank in the country to capitalise on the numerous opportunities within the economy.
posted on 12.06.2024
Zimbabwe Dollar falls to record low ahead of currency announcement
The Zimbabwean currency has fallen to another all-time low as residents sought refuge in the stability of the US dollar amid speculation the central bank is on the verge of making an announcement regarding the future of the local currency.
posted on 03.04.2024
Media contact
deVere Zimbabwe’s Public Relations Department deals with all areas of the media and external communications including international, national, regional, local, trade, consumer, print, broadcast, social and online. The Department aims to provide a helpful service to journalists, broadcasters and editors, amongst others, and reply to all media enquiries, including urgent enquiries out of hours, within agreed deadlines. Our press office does not have access to client details and will not be able to assist with individual client enquiries. Please contact deVere Zimbabwe’s Head of Public Relations on [email protected] or call +44 2071220925