%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(10).png "A new gold-backed currency called ZiG has been introduced by Zimbabwe")
- This is the latest attempt by the country to stabilize an economy that has faced numerous crises over the past 25 years.
- The new banknotes come in denominations from 1 to 200.
- The ZiG replaces the Zimbabwean dollar, the RTGS, which had lost three-quarters of its value so far this year.
- However, the US dollar, which accounts for 85% of transactions, will remain legal tender.
- The new currency was rolled out with immediate effect and banks must convert current Zimbabwe dollar balances to the ZiG.
- The central bank has committed to ensuring that the amount of local currency in circulation is backed by an equivalent value in precious minerals - mainly gold - or foreign exchange.
- It’s also worth noting that the ZiG is not a physical form of currency.
- It is a digital token backed by gold.
- The value of ZiG is linked to the price of gold, but it operates as a digital asset rather than a physical banknote or coin.
Question:
Q.1 What is the name of the new currency introduced by Zimbabwe?a. Zimbabwean Dollar
b. ZiG
c. RTGS
d. US Dollar
