Zimbabwe Introduces a new Currency Backed by Gold to Combat Inflation.

The central bank of Zimbabwe has introduced a new “structured currency” that is backed by gold in an effort to stabilize the long-collapsing economy of the nation and combat extremely high inflation.

Zim Gold (ZiG), the new currency, will be backed by gold, precious minerals, and foreign currencies, Zimbabwe’s Reserve Bank governor, John Mushayavanhu, announced to media in the country’s capital on Friday.

The ZiG would be used in conjunction with a basket of other currencies, according to Mushayavanhu.

He added that an exchange rate set by the market would be implemented by the central bank. He declared, “As of right now, banks will convert current Zimbabwe dollar balances into the new currency.”

He continued, introducing the new banknotes, which are available in eight denominations ranging from one to 200 ZiG, saying the move’s goal is to promote “simplicity, certainty, [and] predictability” in Zimbabwe’s financial operations.

Zimbabwe’s iconic Balancing Rocks, previously depicted on the old notes, are now represented by gold ingots being struck on the new ones.

According to Mushayavanhu, Zimbabweans have 21 days to exchange their old currency for new.