As per reports, the Reserve Bank of Zimbabwe will launch a gold-pegged digital currency and legalize them in the country, stated Cointelegraph. It is believed that the government took this step for stabilizing the local currency after its continuous devaluation in comparison to the U.S. dollar.
According to a report by The Sunday Mail, a local media platform, this initiative taken by Zimbabwe will allow the exchange of Zimbabwean dollars with digital gold tokens and secure Zimbabweans against currency volatility, Cointelegraph highlighted. Reportedly, this step also plans to “leave no one and no place behind,” John Mangudya, Governor, Reserve Bank of Zimbabwe, added further.
With insights from Bloomberg, a market research platform, Zimbabwe’s money trades at 1,001 ZWL against one dollar and in Harare it is exchanged for 1,750 ZWL, added Cointelegraph. It is expected that Zimbabwe’s annual consumer price inflation was about 87.6%, in March 2023.
Sources revealed Mangduya told that the present exchange rate volatility has occurred due to the “expectations of increased foreign currency supply on the market due to the tobacco season,” concluded Cointelegraph.
(With insights from Cointelegraph)