Zimbabwe knocks 40% off value of gold-backed currency

Zimbabwe’s central bank has devalued its gold-backed currency, the Zig, by over 40% against the US dollar, dropping the rate to 24 Zig to $1.

This decision reflects increased demand for the US dollar and follows warnings from large retailers about potential store closures.

The Zig, introduced six months ago, is Zimbabwe’s sixth currency in 25 years, but has lost significant value on the black market.

The Reserve Bank of Zimbabwe (RBZ) says the move aims to address exchange rate risks and stabilize prices, but public trust remains low after past economic instability.