Zimbabwe new structured currency features
Ahead of the much-anticipated launch of a new Zimbabwean currency on Friday, the NewsHawks looks at some of the basic characteristics or features of the coming Structured Currency.
Name: Structured Currency;
*Exchange rate/Value: US$1: 10ZiG (ZW$10);
*ZiG (meaning Zimbabwe Gold) is a digital token issued in units of 1 milligramme of gold;
*Gold coin: Mosi-oa-Tunya gold coins are equivalent to ZiG;
*Structured Currency will be gold backed (government been buying bullion to support this currency since October 2022);
*Will also be supported by US$ reserves (from export proceeds retention scheme);
Does the Structured Currency have money characteristics?
Some of the most common characteristics of money are: divisibility, acceptability, portability, homogeneity,
durability, scarcity, fungibility and store of value.
This is the litmus test for the new currency. Will it command confidence, which is critical for its survival as a unit of account and means of exchange in this volatile economic environment without a political settlement? We are Ignite Media Zimbabwe.
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Will this stem currency volatility and exchange rate-driven inflation?
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