Business / Economy
Zimbabwe Abandons Weakened Dollar for Gold-Linked Currency
05 Apr 2024 at 08:28hrs | Views
Reserve Bank of Zimbabwe (RBZ) Governor Dr. John Mushayavanhu unveiled the 2024 Monetary Policy Statement (MPS) this afternoon, outlining a comprehensive plan to stabilize the nation's currency. The policy aims to establish a robust and steady monetary framework.
Key highlights from the MPS include the introduction of a structured currency backed by reserves and royalties, known as ZiG. This new currency will replace the beleaguered ZWL dollar and will circulate alongside other currencies. The multi-currency system will remain in place until 2030, as mandated by law.
Under the new policy, all financial obligations will be converted to ZiG, with banks required to accept old notes for the next 21 days. ZiG notes will be issued in denominations of 1, 2, 5, 10, 20, 100, and 200, with 1 ZiG equivalent to 6 US cents. This strategic move aims to enhance confidence in Zimbabwe's financial system and pave the way for economic stability.
Key highlights from the MPS include the introduction of a structured currency backed by reserves and royalties, known as ZiG. This new currency will replace the beleaguered ZWL dollar and will circulate alongside other currencies. The multi-currency system will remain in place until 2030, as mandated by law.
Under the new policy, all financial obligations will be converted to ZiG, with banks required to accept old notes for the next 21 days. ZiG notes will be issued in denominations of 1, 2, 5, 10, 20, 100, and 200, with 1 ZiG equivalent to 6 US cents. This strategic move aims to enhance confidence in Zimbabwe's financial system and pave the way for economic stability.
Source - Byo24News
