The International Monetary Fund (IMF) has stated that Zimbabwe’s recently introduced gold-backed fiat currency represents a significant policy step. This is the IMF’s first substantial comment on the currency since its inception. The global lender has reportedly announced plans to send a team in June to evaluate the performance of the new currency.
IMF Calls Zimbabwe’s Gold-Backed Currency an ‘Important Policy Action’
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Contrasting IMF Views on Zimbabwe’s Gold-Backed Currencies
The International Monetary Fund (IMF) has labeled Zimbabwe’s newly introduced gold-backed currency, known as ZIG, as an “important policy step.” The global lender announced that a team would be dispatched to evaluate the new currency in June.
According to a report, the IMF’s comments on the Southern African nation’s latest currency are the most substantive since the launch of the ZIG more than a month ago. The lender’s recent stance on Zimbabwe’s currency launch appears to contradict the reservations it voiced when the Reserve Bank of Zimbabwe (RBZ) introduced a gold-backed digital currency.
As previously reported by Bitcoin.com News, the IMF criticized the RBZ’s decision to introduce the gold-backed digital currency, arguing that it posed a threat to financial stability. Instead of launching the digital currency, the global lender suggested that Zimbabwe should have opted to liberalize the foreign exchange market.
However, in an emailed response, the Bretton Woods institution reportedly commended key reforms implemented by the RBZ, including the launch of the ZIG.
“The introduction of the ZIG represents an important policy action, complemented by several other policy changes, including monetary, exchange rate, and fiscal policy measures,” the IMF stated.
Meanwhile, the Bloomberg report disclosed that the ZIG, which traded at just over ZIG13.56 per dollar at its launch, reached its highest level yet of ZIG13.21 per dollar on May 23.
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