12 February 2024
Zimbabwe is exploring the option of backing its currency with gold to stabilize its exchange rate, according to Finance Minister Mthuli Ncube. This announcement comes as part of efforts to address the ongoing instability of the Zimbabwe dollar, which has struggled since its reintroduction in 2019 after a period of hyperinflation. President Emmerson Mnangagwa also indicated plans for a “structured currency” to overhaul the current system. Despite previous attempts, including the introduction of gold coins and digital tokens, to support the currency, the Zimbabwe dollar continues to perform poorly. These efforts have faced criticism from the International Monetary Fund, which has questioned the unconventional methods employed by Zimbabwe to improve its currency’s value.