Zimbabwe's ZiG Currency: How Does It Work, and Can It Last?
Zimbabwe's gold-backed currency, the ZiG, is already suffering from the same lack of credibility that doomed its predecessors.
Short for Zimbabwe Gold, the ZiG replaced the Zimbabwean dollar in April 2024 and is the nation's sixth attempt since 2009 at creating a local unit that can supersede the greenback in domestic transactions. But it's been dogged by similar obstacles that have kept Zimbabwe locked out of international capital markets since it defaulted on $21 billion of debt in 1999.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
an hour ago
- Bloomberg
Ivanhoe Restarts Part of Congo Copper Mine Impacted by Flooding
Ivanhoe Mines Ltd. has restarted underground operations in part of its giant copper mine in the Democratic Republic of Congo while another section remains offline after seismic activity caused flooding deep below ground. In an update late Wednesday, the Canadian company said equipment and mining crews returned on June 7 to the western side of the Kakula mine, with underground operations there resuming in a 'conservative manner.'
Bloomberg
4 hours ago
- Bloomberg
The Bond Vigilantes Are Taking a Nap
The US Treasury's auction on Wednesday of $39 billion in 10-year notes was disappointing. It's not that the sale of what is considered the global benchmark, helping determine borrowing costs for governments, businesses and consumers round the world, was greeted with subpar demand. Rather, demand by just about any measure was pretty good. And that is disappointing at a time when these auctions are being scrutinized perhaps more closely than ever for evidence that investors are hesitant to lend to the US government over concern about swelling debt and deficits.
Bloomberg
4 hours ago
- Bloomberg
Gundlach Says ‘Reckoning Is Coming' for US Treasuries
America's debt burden and interest expense have become 'untenable,' and that means long-term US Treasury bonds are no longer seen as legitimate risk-free investments, said DoubleLine Capital's Jeffrey Gundlach. 'There's an awareness now that the long-term Treasury bond is not a legitimate flight-to-quality asset,' the veteran bond manager said Wednesday in an interview at the Bloomberg Global Credit Forum in Los Angeles. A 'reckoning is coming.'
