Zimbabwe has changed its currency to Zimbabwean gold

The Reserve Bank of Zimbabwe is putting into circulation a new currency – Zimbabwe Gold (Zimbabwe Gold, or ZiG), writes MarketWatch with reference to its message.

ZiG will replace the Zimbabwean dollar and will be backed by gold, other precious metals and foreign currencies.

The new currency will help simplify monetary and financial relations, bring certainty and predictability to them, said the head of the national central bank John Mushayaavanhu.

The central bank will set the interest rate for borrowing in Zimbabwean gold at 20 percent against a global maximum of 130 percent for the former currency.

Banks will start converting account balances into the new currency on Friday. It will be put into circulation on Monday at a rate of 13.56 gold pieces per U.S. dollar, CNBC Africa reported.

Zimbabwe’s annual inflation accelerated to 55 percent in March from more than 47 percent a month earlier amid the collapse of the former national currency and the country’s economy’s reliance on the U.S. dollar.

The Reserve Bank of Zimbabwe also cited problems with change in payments, including its issuance in the form of coupons or candy.

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CURRENCY, Zimbabwe, Zimbabwean gold dollar