Zimbabwe today has launched a new currency as John Mushayavanhu becomes the new Governor of the Reserve Bank of Zimbabwe replacing John Mangudya.
The ZiG will start trading at 13.5616 against the United States dollar.
*Exchange rate/Value: US$1: 13.5616 ZiG (ZW$10);
*ZiG (meaning Zimbabwe Gold) is a digital token issued in units of 1 milligramme of gold;
*Gold coin: Mosi-oa-Tunya gold coins are equivalent to ZiG;
*Structured Currency will be gold backed (government been buying bullion to support this currency since October 2022);
*Will also be supported by US$ reserves (from export proceeds retention scheme);
Does the Structured Currency have money characteristics?
Some of the most common characteristics of money are: divisibility, acceptability, portability, homogeneity,
durability, scarcity, fungibility and store of value.
This is the litmus test for the new currency. Will it command confidence, which is critical for its survival as a unit of account and means of exchange in this volatile economic environment without a political settlement?
Will this stem currency volatility and exchange rate-driven inflation?
