Zimbabwe Shifts Focus from Failing Currency to Gold-Backed Exchange Rate

Zimbabwe has opted to let its currency depreciate freely, signalling a departure from previous attempts to defend its failing currency. Instead, the country is exploring the possibility of introducing a new exchange rate system, potentially backed by gold. In 2024, Zimbabwe's local currency experienced a continuous decline against the US dollar, resulting in a significant loss of purchasing power for citizens. The price of basic commodities, such as a loaf of bread, has skyrocketed from Z$6,105 to Z$19,357 within just 11 weeks.
Traditionally, such rapid depreciation would prompt intervention from the central bank to stabilise the currency. However, this time, authorities have refrained from taking action, indicating a shift in strategy. The move towards a gold-backed exchange rate suggests a strategic shift in Zimbabwe's monetary policy, aiming to address the challenges posed by the country's volatile currency and stabilise its economy.
Host: Perpetua Fasanmi-Peter
Guest: Dr Prosper Chitambara, Development Economist, Harare, Zimbabwe
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[@owenchikara517]

Professional, informed commentary

[@MrRastafari01]

Best reform is no more stealing, no more giving away natural resources to the Chinese for next to nothing. The Best investment is home grown investment and investment from other African countries. The mining contracts that already exist need to be reconfigured.

[@tafadzwachikweye9461]

Great presentation

[@user-np9kh4yx8y]

Wat reforms .and till Wen?

[@user-np9kh4yx8y]

You are better off iwewe not the general publuc...you probably do not even have a note of the local currency ..get real!!!