Zimbabwe launches new gold-backed currency - ZiG

[sunny225]

www.bbc.com/news/world-africa-68736155

Zimbabwe launches new gold-backed currency - ZiG

Zimbabwe has introduced a new gold-backed currency called ZiG - the name stands for "Zimbabwe Gold".



It is the latest attempt to stabilise an economy that has lurched from crisis to crisis for the past 25 years.



Unveiling the new notes, central bank governor John Mushayavanhu said the ZiG would be structured, and set at a market-determined exchange rate.



The ZiG replaces a Zimbabwean dollar, the RTGS, that had lost three-quarters of its value so far this year.



Annual inflation in March reached 55% - a seven-month high.



Zimbabweans have 21 days to exchange old, inflation-hit notes for the new currency.



However, the US dollar, which accounts for 85% of transactions, will remain legal tender and most people are likely to continue to prefer this.



The new ZiG banknotes come in denominations of between 1 and 200.



Coins will also be introduced to overcome the shortage of US coins, which has seen people receive change in sweets, small chocolates and pens.
more at link

[farmrbrown]

However, the US dollar, which accounts for 85% of transactions, will remain legal tender and most people are likely to continue to prefer this.

A gold backed currency vs. Uncle Sam's trading stamps....hmmmm........lemme think a minute.

LMAO, never mind, I got a "A" in 3rd grade math!

[BrewDaddy]

Is this the same Zimbabwe that managed to get their inflation rate so high they ended up printing up 100 TRILLION DOLLAR notes?

Which you can now get at a coin/collector shop for like $2 USD?

bd

[Ozarks Tom]

Unless they can redeem those ZIGs for real gold, it's a scam.

[sunny225]

Apr 7, 2024 21:14:53 GMT farmrbrown said:

However, the US dollar, which accounts for 85% of transactions, will remain legal tender and most people are likely to continue to prefer this.

A gold backed currency vs. Uncle Sam's trading stamps....hmmmm........lemme think a minute.

LMAO, never mind, I got a "A" in 3rd grade math!

IF they actually have the gold to back their currency, I know which one I would choose. And it wouldn't be the fiat dollars.

[farmrbrown]

Yep. I read further into that article and saw this....

He committed to ensuring that the amount of local currency in circulation was backed by equivalent value in precious minerals - mainly gold - or foreign exchange, in order to prevent the currency losing value like its predecessors.

I know there used to be a lot of gold there so they have the means to back it up, but the part I bolded leaves room for doubt.

[Ozarks Tom]

Unless those ZiGs can be redeemed for real gold, they might as well be backed by pumpkins or squash. It's still a fiat currency.

The only reason they like using dollars for their own currency is because they trust our government more than their own. Fools.