The Reserve Bank of Zimbabwe (RBZ) has released the Gold-backed Digital Tokens Issue No. 44/2024 results and prices.
Apparently, the country is set to launch of a new Zimbabwean currency on Friday, to be known as the Structured currency.
Some of its basic characteristics or features of the coming currency are:-
*Name: Structured Currency;
*Exchange rate/Value: US$1: 10ZiG (ZW$10); *ZiG (meaning Zimbabwe Gold) is a digital token issued in units of 1 milligramme of gold; *Gold coin: Mosi-oa-Tunya gold coins are equivalent to ZiG;
Structured Currency will be gold backed (government been buying bullion to support this currency since October 2022); and will also be supported by US$ reserves (from export proceeds retention scheme).
Some of the most common characteristics of money are: divisibility, acceptability, portability, homogeneity,
durability, scarcity, fungibility and store of value.
Meanwhile, it remains to be a seen if the new currency is going to 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.
Key question among many is: Will this stem currency volatility and exchange rate-driven inflation? Only time will tell.
Zwnews
