As you have probably noticed by now from my posts, I keep a close eye on Zig from Zimbabwe, their new gold-backed currency that aims to replace their hyper inflated toilet paper Zimbabwean dollar
The Zimbabwe Gold (ZiG; code: ZWG) has been the official currency of Zimbabwe since 8 April 2024, backed by US$575 million worth of hard assets: foreign currencies, gold, and other precious metals. It replaced the Zimbabwean dollar, which suffered from rapid depreciation, with the official exchange rate surpassing 30,000 Zimbabwean dollars per U.S. dollar on 5 April 2024, whilst the parallel market rate reached 40,000 per U.S. dollar. Annual inflation in Zimbabwe hit 55.3% in March 2024.Wikipedia
About ten days ago we had a really promising report by the IMF on the new currency and recently Zimbabwe’s new central bank Governor John Mushayavanhu pledged on a Bloomberg interview that they plan to add significant amounts of gold in their treasury by the end of the year
In the 100 days that I have been in office we have increased those reserves by about 30%. We are now on about $370 million worth of reserves
By the time we get to the end of the year we should be talking of no less than three tons of gold. (Note: They started with 2.5 tones)
Mushayavanhu also committed to not print any further ZiG unless the central bank has the reserves to back it with the end goal being to stop the nation’s reliance on US dollars, which essentially still is the main currency of the country.
In related news the initial timeline was for zig to be the sole currency by 2030 but now President Emmerson Mnangagwa has hinted this may be achieved by end 2026.
Anyways, that's the latest quick rundown on Zig, here's a link to Bloomberg (paywall removed) with some more fluff.
This btw is Zimbabwe's sixth attempt at having a functioning currency in the last 15 years.... Will they pull it this time?
Well, dunno.. I have no idea on the country's politics and how strong corruption runs these days there but they seem to be on a good start.
As a holder of a respectable amount of shiny stuff I root for them 100% as if they are successful chances are more will follow their example 🤑🤞
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