Kenyan President Hails Zimbabwe’s Gold-Backed Currency as Economic Boon
Kenyan President William Ruto recently commended Zimbabwe’s new gold-backed currency, ZiG, expressing optimism about its potential to drive economic recovery in the southern African nation.
During his address at an international trade fair in Bulawayo, Ruto lauded the introduction of ZiG as a bold move by the Zimbabwean government to rejuvenate the economy amid numerous challenges and pressures, as reported by Bloomberg.
Ruto emphasized the significant impact of Zimbabwe’s vast reserves of copper, lithium, gold, platinum, silver, and other precious metals on the nation’s wealth.
He highlighted the importance of utilizing these resources to support the national currency, stating that the radical revitalization of Zimbabwe’s monetary policy would greatly contribute to the country’s economic resurgence.
ZiG, which stands for “Zimbabwe Gold,” was launched earlier this month with the aim of stabilizing the economy and shielding citizens from currency fluctuations and rampant inflation.
While Zimbabwe’s gold deposits have historically been a cornerstone of its economy, constituting nearly 25% of total exports in January 2024, concerns have been raised about the sufficiency of reserves to back the new currency and its susceptibility to volatility in gold prices.
Addressing these concerns, Zimbabwe’s Central Bank governor affirmed that the issuance of ZiG notes would be contingent upon the availability of adequate reserves to support the currency.
Vice President Constantino Chiwenga also underscored the significance of ZiG, noting that it marks a crucial step toward reducing reliance on the US dollar in the economy, despite the latter’s status as legal tender until 2030.
The newly introduced ZiG banknotes will be available in denominations ranging from 1 to 200, reflecting Zimbabwe’s commitment to establishing a stable and resilient monetary system.
