Zimbabwe Announces New Gold-Backed Currency

Zimbabwe introduced a new gold currency, called ZIG, to overcome the latest economic issues.

Zimbabwe's Central Bank Governor John Mushayavanhu said the ZiG would be set at a market-determined exchange rate.

The ZiG is expected to replace the Zimbabwean dollar that lost three-quarters of its value so far this year.

Annual inflation in March reached 55% which is a seven-month high.

Zimbabweans have 21 days to exchange old notes for the new currency.

However, the US dollar will remain legal tender and most people are likely to continue to depend on the USD.

The new ZiG banknotes come in denominations of between 1 and 200.

Mushayavanhu said the new currency was being rolled out with immediate effect and banks must convert current Zimbabwe dollar balances to the ZiG.