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Here is the true value and features of the new structured currency

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?

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