The International Monetary Fund has hailed Zimbabwe’s introduction of its new currency, Zimbabwe Gold (ZiG), as a significant milestone.
This marks the IMF’s first substantive comment on the ZiG since its launch in April.
Zimbabwe’s new governor initiated the introduction of the new currency in an effort to establish a functional monetary system, following previous failed attempts amidst hyperinflation and collapsing foreign exchange values.
Since the launch of ZiG, the central bank has adjusted its benchmark interest rate from 130% to 20% — a considerable reduction from its previous status as the highest rate globally. Additionally, the ZiG/dollar exchange rate is now published daily on the central bank’s website.
On Thursday, ZiG reached its highest value against the US dollar, reaching 13.21 per dollar, representing a 2.6% increase from its initial trading value on April 8.
The IMF has announced plans to dispatch a team to Zimbabwe in late June for the country’s regular economic assessment.
