Zimbabwe launches new gold-backed currency

Central bank governor John Mushayavanhu said the ZiG would be structured and set at a market-determined exchange rate.

ZiG stands for Zimbabwe Gold.

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

The US dollar, which accounts for 85% of transactions, will remain legal tender.

The notes come in denominations of 1, 2, 5, 10, 50, 100 and 200, the governor said.

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

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

Mr Mushayavanhu said the new currency will be implemented with immediate effect and banks must convert current Zimbabwe dollar balances to the ZiG.

It replaces a Zimbabwean dollar that has lost three-quarters of its value so far this year.

Zimbabwe has tried a variety of means to stabilise its currency – at one stage the bank was printing ten trillion dollar notes, as inflation ran out of control.