Zimbabwe to introduce gold-backed digital currency

Zimbabwe to introduce gold-backed digital currency: The Reserve Bank of Zimbabwe (RBZ) has revealed intentions to launch a gold-backed digital currency to combat the decreasing value of the Zimbabwean currency. The digital gold tokens will be a form of electronic money, backed by gold held at the RBZ. This will enable holders of small amounts of Zimbabwean dollars to exchange their money for tokens and protect themselves against exchange rate fluctuations.

April 2023 Current Affairs Quiz

Zimbabwe’s dual currency structure:

The Zimbabwean economy operates on a dual currency structure, with the Zimbabwean dollar and the U.S. dollar in use. According to the RBZ, the US dollar now dominates and accounts for over 70% of domestic trade. The RBZ issued gold coins in July 2022 in an effort to arrest the decline of the Zimbabwean currency and diminish demand for the US dollar.

The RBZ had re-introduced the Zimbabwean dollar in 2019, replacing the previous multiple currency system that had been in place since 2009, when the country abandoned its old local dollar due to years of hyperinflation.

Due to the outbreak of the COVID-19 pandemic in 2020, the Zimbabwean government permitted individuals with free funds to use their foreign currency to make domestic payments for goods and services. This policy resulted in the current dual currency system, in which the Zimbabwean dollar and the US dollar are both used for domestic commerce.

Zimbabwe: Important Facts:

• Location: Zimbabwe is a landlocked country located in southern Africa.
• Capital City: Harare is the capital city of Zimbabwe.
• Population: The estimated population of Zimbabwe as of 2021 is around 15.2 million.
• Official Languages: Zimbabwe’s official languages are English, Shona, and Ndebele.
• Currency: The Zimbabwean dollar is the official currency of the country.
• President: The current President of Zimbabwe is Emmerson Mnangagwa.

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