Zimbabwe to create new currency board and link currency to gold.

Zimbabwe to create new currency board and link currency to gold.
Photo by Rob / Unsplash

Zimbabwe is exploring options to create a new currency board to stabilise the Zimbabwean dollar and link it to hard assets like gold.

The Zimbabwe dollar has lost 94% of its value since January 2023. The government recently introduced a ' structured currency' to address the rapid devaluation of the currency after previous policies, such as implementing the bullion-backed digital tokens known as ZiG and gold coins, failed to prevent further devaluation.

Acknowledging the challenges, Zimbabwe's Finance Minister Mthuli Ncube said implementing a currency board will enable the government to manage the growth in domestic liquidity and influence both monetary and fiscal policy to ease inflation and demand and supply.

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