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Zimbabwe adopts a new currency to combat hyperinflation

ByThe Mwebantu Team

Faced with the economic crisis, Zimbabwe has adopted a new currency, Zimbabwe gold (Zig), indexed to the value of gold, to fight against its persistent hyperinflation for almost two decades.

Zimbabwe has taken new measures to stabilize its economy and fight hyperinflation. The country has indeed adopted a new currency, according to the Zimbabwean authorities.

“As of today, banks will convert the sales currently to Zimbabwean dollars into the new currency called the gold of Zimbabwe (Zimbabwe Gold), Zig”said at a press conference the governor of the central bank John Mushayavanhu. This measure is part of an attempt to stabilize economic and restore confidence in the country’s monetary system, after years of continuous depreciation of the national currency.

Zimbabwe has one of the highest inflation rates in the world, having officially reached 55% in March after exceeding three figures the previous year. The rapid depreciation of the Zimbabwean dollar compared to the US dollar has also contributed to economic instability.

In 2008, Zimbabwe was faced with devastating hyperinflation which led to the issue of tickets worth a thousand billion Zimbabweans. This crisis has led to the abandonment of the local currency for the benefit of the US dollar as an official currency. Despite the reintroduction of the Zimbabwean dollar in 2019, many residents still prefer to use the US dollar for their transactions.

The Mwebantu Team
The Mwebantu Team

Led by Nia, the insightful editor-in-chief, Kwame, our technology expert, and Amara, the bold field reporter, the Mwebantu team weaves the vibrant narrative of Africa every day, forging a narrative bridge between the continent and the world. Their shared passion illuminates the mission of Mwebantu News, making African voices resonate on the global stage.