Zimbabwe’s central bank has devalued its gold-backed currency by more than 40% against the US dollar, signaling that the country’s latest attempt to stabilize its struggling economy is facing difficulties.
On Friday, the Reserve Bank of Zimbabwe (RBZ) lowered the local exchange rate to 24 Zigs per US dollar (£0.75).
This decline is driven by a growing demand for the US dollar, which is also accepted as legal tender. The move follows warnings from major retailers about potential store closures if the exchange rate remained unchanged.
The Zig, short for Zimbabwe Gold, was introduced over six months ago, marking the nation’s sixth currency in 25 years.
By: Angelina Ouedraogo
Source: BBC
