Less than six months after Zimbabwe launched yet another new currency, it was forced to devalue it, signalling new challenges for the Southern African country’s efforts to stand up a local currency and reduce dependency on the United States dollar.
In April, Zimbabwe’s central bank launched the ZiG, or Zimbabwe Gold, which was hyped as a stabiliser amid the country’s long-running currency and economic crisis.
But in late September, authorities slashed the value of the new gold-backed currency by more than 40 percent.
The ZiG is only one of several attempts Zimbabwean authorities have made to introduce a new currency since 2009 when surging hyperinflation caused a spectacular crash of the Zimbabwe dollar, or the Zimdollar.
The effects of the inflation crisis are still glaring with Zimbabwe battling high inflation worsened by a severe drought in the region.
Here’s what to know about the latest in Zimbabwe’s currency crisis and why the government’s efforts to establish a…
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