Zimbabwe’s gold-backed currency loses half its value: Why and what’s next?

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…