The Introduction provides an overview of the Reserve Bank of Zimbabwe’s (RBZ) initiative to address economic instability by introducing a new gold-backed currency, the ZiG.
Background:
The Background section discusses Zimbabwe’s economic challenges, including hyperinflation and currency instability, leading to the collapse of the Zimbabwean dollar in 2009.
Launch of ZiG:
This section highlights the launch of the ZiG on April 5, 2024, as a replacement for the Zimbabwean dollar and its aim to restore stability and confidence in the financial system.
Features of ZiG:
Here, the key features of the ZiG are outlined, including its backing by gold reserves, denominations, and its circulation alongside other foreign currencies.
Significance of ZiG:
The Significance section elaborates on how the introduction of ZiG signifies Zimbabwe’s attempt to move past economic challenges towards a more stable monetary future.
Future Outlook:
Lastly, the Future Outlook section discusses the potential effectiveness of ZiG in mitigating economic instability and fostering long-term economic growth, contingent upon robust economic policies and political stability.
Multiple Choice Questions (MCQs) with Answers:
- What is the name of the new gold-backed currency introduced by the Reserve Bank of Zimbabwe?
- A) ZD (Zimbabwe Dollar)
- B) ZiG (Zimbabwe Gold)
- C) USD (United States Dollar)
- D) ZWN (Zimbabwean Dollar)
- Answer: B) ZiG (Zimbabwe Gold)
- When was the ZiG officially launched?
- A) April 5, 2022
- B) April 5, 2023
- C) April 5, 2024
- D) April 5, 2025
- Answer: C) April 5, 2024
- What caused the collapse of the Zimbabwean dollar in 2009?
- A) Deflation
- B) Stable exchange rates
- C) Hyperinflation
- D) Gold standard
- Answer: C) Hyperinflation
- What backs the value of the ZiG?
- A) Foreign currency reserves
- B) Oil reserves
- C) Gold reserves
- D) Agricultural products
- Answer: C) Gold reserves
- What is one of the aims of introducing the ZiG?
- A) Increase exchange rate volatility
- B) Restore public trust in the financial system
- C) Encourage hyperinflation
- D) Promote currency devaluation
- Answer: B) Restore public trust in the financial system