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Zimbabwe adopts new currency to fight hyperinflation

Faced with the economic crisis, Zimbabwe adopted a new currency, Zimbabwe Gold (ZiG), indexed to the value of gold, to combat its persistent hyperinflation for almost two decades.

Zimbabwe has taken new steps to stabilize its economy and combat hyperinflation. The country has in fact adopted a new currency, according to the Zimbabwean authorities.

“Starting today, banks will convert balances currently in Zimbabwe dollars into the new currency called Zimbabwe Gold, ZiG”, Central Bank Governor John Mushayavanhu said at a press conference. This measure is part of an attempt to stabilize the economy 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 triple digits the previous year. The rapid depreciation of the Zimbabwean dollar against the US dollar has also contributed to economic instability.

In 2008, Zimbabwe faced devastating hyperinflation which led to the issuance of notes worth a trillion Zimbabwean dollars. This crisis led to the abandonment of the local currency in favor of the US dollar as the official currency. Despite the reintroduction of the Zimbabwe dollar in 2019, many locals still prefer to use the US dollar for their transactions.