Zimbabwe has said it plans to let its rapidly depreciating gold-backed currency, Zig, float freely on the foreign exchange market. A central bank official said this would help the currency achieve price discovery without administrative interference. However, the official did not give a timeline for when the central bank intends to implement this policy. Since its introduction on April 5, the currency has been losing ground against the greenback, culminating in the central bank’s decision to devalue it by over 40% in September. The Zimbabwean central bank, which has faced criticism for maintaining an overvalued currency, said it plans to intervene in the forex market only when necessary.
Zimbabwe Plans to 'Float' Rapidly Depreciating Gold-Backed Currency
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