Aman Trivedi
Zimbabwe introduced a new gold-backed currency called the ZiG which came into effect from April 5. It will co-circulate with other foreign currencies in the economy.
Zimbabwe intorduced the ZiG, a new currency backed by gold, to try to fix economic issues.
The ZiG is the sixth currency Zimbabwe has used since 2009 when the Zimbabwe dollar collapsed amid hyperinflation of 5 billion percent.
Zimbabwe's central bank decided the swap rate based on the closing interbank exchange rate and the price of gold as of April 5.
Zimbabwe has struggled long with high inflation, with inflation rates exceeding 500% in recent years.
Banks in Zimbabwe have been converting the country's previous national currency, the Zimbabwe dollar, into ZiGs.
A new attempt to fix Zimbabwe's currency issues, while it is unclear if it will succeed in the long run, shows a strong effort to end currency instability.