The government of Zimbabwe will launch a new currency. This measure aims to end the monetary crisis and replace the previous currency, which has suffered devaluation in recent months and has been rejected by the population

We're doing what we're doing to make sure our local currency doesn't die. Like I said, we were already in a situation where nearly 85% of transactions were conducted in US dollars. This is because our local currency wasn't performing, wasn't up to the mark in terms of its function or reserve value," said John Mushayavanhu, Governor of the Reserve Bank of Zimbabwe

The Zimbabwean dollar has faced sustained pressure in recent weeks, making it one of the least performing currencies in the world

Since January, the currency has lost more than 70% of its value on the official market and has collapsed even further on the black market, which is thriving but illegal

Inflation has increased from 26.5% in December last year to 34.8% in January, before reaching 55.3% in March, according to official figures

Currency stability will prevent massive price fluctuations from day to day. Divisibility. I didn't mention that we wanted a situation where you could buy and obtain currency and transaction capacity. Once we stabilize our currency, it will be better accepted in the economy and we should see more people making transactions, not with the currency," added the governor.

The Governor of the Reserve Bank of Zimbabwe, John Mushayavanhu, announced that the new currency will be called ZiG. It will be backed by gold reserves and a basket of foreign currencies. It will come into effect on Monday, April 8, 2024

Article source:africanews