Zimbabwe has launched a new currency, the Zimbabwe Gold (ZiG), available in both paper and coin formats, following its initial release as a digital payment option in October.
The Reserve Bank of Zimbabwe commenced the distribution of physical ZiGs on April 29, ensuring all national banks were stocked by day's end.
This move aims at stabilizing the country's financial system, historically plagued by an unstable currency, by offering a medium backed by reserves triple its issuance value.
The transition from the Zimbabwean dollar to the ZiG, which traded at an exchange rate of 13.56 to the U.S. dollar at launch, was first flagged on April 5.
Digital transactions in ZiG had already started on April 2, pegged to gold prices, following an initial introduction in the preceding October.
This strategic endeavor by Zimbabwe to revitalise its economy through a gold and foreign currency-supported medium reveals a determined approach to mitigate long-standing financial instability.