https://en.sputniknews.africa/20240507/zimbabwe-to-adopt-recently-introduced-gold-backed-currency-for-annual-budget-1066402112.html
Zimbabwe to Adopt Recently Introduced Gold-Backed Currency for Annual Budget
Zimbabwe to Adopt Recently Introduced Gold-Backed Currency for Annual Budget
Sputnik Africa
Named ZiG (Zimbabwe Gold), the new currency was introduced in Zimbabwe at the beginning of April. It is entirely backed by precious metals (mainly gold) and... 07.05.2024, Sputnik Africa
2024-05-07T13:12+0200
2024-05-07T13:12+0200
2024-05-07T15:16+0200
sub-saharan africa
zimbabwe
economy
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alternative currency
southern africa
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us dollar
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Zimbabwe's authorities announced the country's plans to convert its annual budget to the recently introduced gold-backed currency, the Zimbabwe Gold (ZiG). This move aims to address the challenges posed by the volatile Zimbabwean dollar and provide greater stability for the nation's finances.Finance Minister Mthuli Ncube informed lawmakers that the budget, originally presented in Zimbabwean dollars, will be converted to ZiG by the end of May or early June. He emphasized that this transition involves a straightforward exchange rate translation, ensuring alignment of revenues and expenditures with the actual budget.The introduction of the ZiG in April marked Zimbabwe's sixth attempt since 2008 to establish a stable domestic currency. The Zimbabwean dollar's significant depreciation against the US dollar this year, losing approximately 80% of its value, made budgeting increasingly difficult.The ZiG, backed by gold reserves, offers a potential solution to the currency instability that has plagued the nation. As of Monday, the ZiG traded at 13.67 to the US dollar, according to the Reserve Bank of Zimbabwe.
https://en.sputniknews.africa/20240429/kenyan-president-hails-zimbabwes-new-gold-backed-currency-as-potential-driver-of-economic-recovery-1066287774.html
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zimbabwe, economy, budget, currency, alternative currency, southern africa, gold, us dollar
zimbabwe, economy, budget, currency, alternative currency, southern africa, gold, us dollar
Zimbabwe to Adopt Recently Introduced Gold-Backed Currency for Annual Budget
13:12 07.05.2024 (Updated: 15:16 07.05.2024) Muhammad Nooh Osman
Writer/Editor
Named ZiG (Zimbabwe Gold), the new currency was introduced in Zimbabwe at the beginning of April. It is entirely backed by precious metals (mainly gold) and foreign currencies.
Zimbabwe's authorities announced the country's plans to
convert its annual budget to the recently introduced gold-backed currency, the Zimbabwe Gold (ZiG). This move aims to address the challenges posed by the volatile Zimbabwean dollar and provide greater stability for the nation's finances.
Finance Minister Mthuli Ncube informed lawmakers that the budget, originally presented in Zimbabwean dollars, will be converted to ZiG by the end of May or early June. He emphasized that this transition involves a straightforward exchange rate translation, ensuring alignment of revenues and expenditures with the actual budget.
"This is an exchange-rate translation at the end of the day. It’s just moving from one currency to another," he said. "It’s very important that we use an exchange rate that is marked to market to make sure that we can align those revenue and expenditures to the real budget."
The
introduction of the ZiG in April marked Zimbabwe's sixth attempt since 2008 to establish a stable domestic currency. The Zimbabwean dollar's significant depreciation against the US dollar this year, losing approximately 80% of its value, made budgeting increasingly difficult.
The ZiG, backed by gold reserves, offers a potential solution to the currency instability that has plagued the nation. As of Monday, the ZiG traded at 13.67 to the US dollar, according to the Reserve Bank of Zimbabwe.
