The Reserve Bank of Zimbabwe (RBZ) has released the latest prices for gold coins and digital tokens.
The are traded on willing-buyer willing-seller basis at the interbank mid-rate which is the exchange rate at which banks are willing to buy and sell currencies to each other.
This is considered the “midpoint” between the buying and selling rates determined by prevailing market conditions such as supply and demand.
This rate is used as a benchmark for many financial transactions, and is often used as a reference rate for exchange rates quoted by banks and financial institutions.
The Reserve Bank of Zimbabwe announced its plans to introduce a gold-backed digital currency to serve as legal tender in the country on April 28.
The introduction of digital tokens was a move by Zimbabwe to support its own local currency, which has been weak against the U.S. dollar on the official market for a long time.
The country has been battling currency instability and high inflation rates for more than ten years.
At the peak of a period of hyperinflation, the country adopted the U.S. dollar in 2009.
In an attempt to revive the struggling economy, the Zimbabwean dollar was reintroduced in 2019. However, in 2022, the government reverted back to using the U.S. dollar to control rising prices.
The country has since introduced another currency, Zimbabwe Gold ZiG, amid fears that it would suffer same fate as others before it.
Market watchers are sceptical saying as long as the economic fundamentals are not attended to as is the case, ZiG is bound to fail.
Zwnews
