No panacea for Zimbabwe as it aims to go for gold
Zimbabwe is mulling a move to a gold-backed currency to stabilise the Zimbabwe dollar. Analysts are concerned that the government is focusing on the symptoms of the country’s economic malaise rather than the cause
Barely a year after releasing a gold-backed digital currency for peer-to-peer and peer-to-business transactions, Zimbabwe’s central bank is mulling a new iteration of the Zimbabwe dollar: a gold-backed currency.
Earlier this month, finance & economic development minister Mthuli Ncube told journalists that Zimbabwe is on “a quest for currency stability”. “We want to make sure that the growth we have achieved so far — which is very strong — is maintained and even increased. We can only do that if we have further stability in the domestic currency ... And the way to do that is perhaps to link the exchange rate to some hard asset, such as gold.”..
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