Zimbabwe introduces new currency called ZiG, aims to reduce inflation to less than 5% by end of year

Zimbabwe today introduced a new currency called Zimbabwe Gold (ZiG) and has given Zimbabweans 21 days to exchange the current local currency notes.

The new currency has a highest note of ZiG200, an improvement from the current Z$100 which at the moment does not buy anything.

Central Bank governor John Mushayavanhu said the exchange rate will now be market determined and the starting rate will be determined by today’s closing interbank exchange rate and yesterday’s gold price in London.

Today’s interbank rate averaged Z$30 674.3204 while yesterday gold price was US$2 285.85.

Mushayavanhu said the new measures he announced today are expected to see inflation dropping from the current 55.3% to less than 5 % by the end of the year.

Below are highlights from the Monetary Policy Statement.

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