Zimbabwe Launches New Gold-Backed Currency: Will it Work? | Vantage with Palki Sharma

Zimbabwe’s central bank launched a new “structured currency” backed by gold. This comes as it seeks to tackle sky-high inflation and stabilise the country’s long-floundering economy. The ZiG – short for Zimbabwe Gold – will replace the Zimbabwean dollar which has tumbled in value over the past year, pushing inflation through the roof. Zimbabweans have 21 days to convert their old cash into new money. But analysts have questioned the move. They ask whether the country has enough reserves to adequately back the currency, There are also doubts over volatility of gold prices. So will this new currency work? Palki Sharma tells you.

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Zimbabwe | New Currency | Gold-Backed Money | Zimbabwe Dollar | Economy | Firstpost | World News | Vantage | Palki Sharma

#zimbabwe #newcurrency #goldbackedmoney #zimbabwedollar #economy #firstpost #vantageonfirstpost #palkisharma #worldnews

Vantage is a ground-breaking news, opinions, and current affairs show from Firstpost. Catering to a global audience, Vantage covers the biggest news stories from a 360-degree perspective, giving viewers a chance to assess the impact of world events through a uniquely Indian lens.

The show is anchored by Palki Sharma, Managing Editor, Firstpost.

By breaking stereotypes, Vantage aims to challenge conventional wisdom and present an alternative view on global affairs, defying the norm and opening the door to new perspectives. The show goes beyond the headlines to uncover the hidden stories – making Vantage a destination for thought-provoking ideas.

Vantage airs Monday to Friday at 9 PM IST on Firstpost across all leading platforms.
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Zimbabwe has introduced a new currency called ZiG in an effort to stabilize its economy and combat hyperinflation. The new currency was officially launched by the Zimbabwean government last month and has been met with cautious optimism by citizens and experts alike.

The decision to introduce ZiG comes after years of economic turmoil in Zimbabwe, marked by hyperinflation and a severe shortage of foreign currency. The country has been using a mix of currencies, including the US dollar and South African rand, since abandoning its own currency in 2009. However, the lack of a stable currency has led to a myriad of challenges for the economy, including price fluctuations and a shortage of basic goods.

The introduction of ZiG is seen as a step towards addressing these issues and restoring confidence in the Zimbabwean economy. The currency is backed by a basket of commodities, including gold, silver, and diamonds, which are abundant in Zimbabwe. This backing is expected to give ZiG a stable value and protect it from the fluctuations that have plagued the country’s previous currencies.

The launch of ZiG has been met with cautious optimism by citizens and experts. While many are hopeful that the new currency will help stabilize the economy and improve living conditions, others are skeptical of the government’s ability to manage the currency effectively. Critics point to the government’s history of mismanagement and corruption as reasons for concern, and fear that ZiG may suffer the same fate as its predecessors.

Despite these concerns, the introduction of ZiG signals a new chapter for Zimbabwe’s economy. The government has promised to implement measures to protect the currency from inflation and ensure its stability in the long term. If successful, ZiG could pave the way for economic growth and prosperity in Zimbabwe, setting the stage for a brighter future for the country and its citizens.

In conclusion, the launch of ZiG represents a significant step forward for Zimbabwe’s economy. While the challenges ahead are significant, the new currency offers hope for a more stable and prosperous future for the country. Only time will tell if ZiG will be successful, but for now, Zimbabweans are cautiously optimistic about what the future may hold.