Zimbabwe's New Gold-Backed Currency Sliding On Black Market

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Zimbabwe's recently introduced gold-backed currency is sliding on the local black market but officials insist the currency is getting stronger and has a bright future. Columbus Mavhunga reports from Harare.

A vendor who requested that his face not be shown holds bills of Zimbabwe's outgoing currency, in Harare, April 15, 2024.

"Let's wait and see," he said."Maybe it will boost our economy for some time. But I do not see anything changing with the new currency, because things are really tight at the moment. We been through this before. When they introduced bond notes, things stabilized for a short time and then it started sliding on the market. They are saying ZiG is around 13 -- it will end up around 40,000 against the dollar.

"We are for ZiG, especially for change," he said."We had no small notes for change. If ZiG notes and coins come, the government would have done a great thing. We want it like now."We need to confirm your email address." 2016, we introduced bond notes which was backed by Afreximbank facility of $400 million," he said."The Afreximbank is an international bank with reputation. But that was not be sufficient to guarantee the success of the bond notes. So it failed.

 

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