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Zimdollar rate decline signals move to Gold Standard

by Staff reporter
21 Mar 2024 at 08:47hrs | Views
Zimbabwe, the poster child of hyperinflation, is allowing a free fall in its currency that it's no longer keen to defend and is instead working on a new exchange rate potentially backed by gold.

The country's local dollar has weakened against the US dollar every day in 2024, sending the price of a single loaf of bread from Z$6,105 to Z$19,357 in a mere 11 weeks.

Such a loss of purchasing power has historically pushed the central bank to intervene and arrest the slide, but this time, there has been no action.

Source - Bloomberg