{"id":110454,"date":"2024-05-27T20:46:01","date_gmt":"2024-05-27T15:16:01","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=110454"},"modified":"2024-05-28T16:42:56","modified_gmt":"2024-05-28T11:12:56","slug":"zimbabwes-new-gold-backed-currency","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/zimbabwes-new-gold-backed-currency","title":{"rendered":"ZiG, Zimbabwe&#8217;s new gold-backed currency"},"content":{"rendered":"<h2><span style=\"font-size: 18pt;\"><strong>Context<\/strong><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In April 2024, Zimbabwe rolled out a <\/span><b>new gold-backed currency called the ZiG<\/b><span style=\"font-weight: 400;\">, or<\/span><b> Zimbabwe Gold<\/b><span style=\"font-weight: 400;\">, in an effort to mitigate the currency instability and hyperinflation that has plagued the country for decades.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The introduction of the world&#8217;s newest currency in April inspired a reggae artist to record a song praising the<\/span><b> ZiG, or Zimbabwe Gold.<\/b><\/li>\n<\/ul>\n<table style=\"width: 100.201%;\">\n<tbody>\n<tr>\n<th style=\"border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle; width: 100%;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Reggae <\/b><span style=\"font-weight: 400;\">is a music genre that originated in Jamaica in the late 1960s. The term also denotes the modern popular music of Jamaica and its diaspora. It usually relates news, social gossip, and political commentary.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>In 2018, UNESCO,<\/b><span style=\"font-weight: 400;\"> the world body\u2019s cultural and scientific agency, added Reggae to its <\/span><b>collection of \u201cintangible cultural heritage\u201d<\/b><span style=\"font-weight: 400;\"> deemed worthy of protection and promotion.<\/span><\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-size: 18pt;\"><strong>About Zimbabwe&#8217;s new gold-backed currency<\/strong><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-110590 alignright\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-28t132238095-6655ba986bbad.webp\" alt=\"Zimbabwe's new gold-backed currency\" width=\"454\" height=\"255\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-28t132238095-6655ba986bbad.webp 1200w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-28t132238095-6655ba986bbad-300x169.webp 300w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-28t132238095-6655ba986bbad-1024x576.webp 1024w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-28t132238095-6655ba986bbad-768x432.webp 768w\" sizes=\"(max-width: 454px) 100vw, 454px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Refers: <\/b><span style=\"font-weight: 400;\">The ZiG is the <\/span><b>sixth currency <\/b><span style=\"font-weight: 400;\">Zimbabwe has used since the 2009 collapse of the Zimbabwe dollar amid hyperinflation of 5 billion percent, one of the world&#8217;s worst currency crashes to date.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">It&#8217;s the <\/span><b>southern African country&#8217;s latest attempt<\/b><span style=\"font-weight: 400;\"> to halt a long-running currency crisis underlining its persistent economic troubles.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Aim:<\/b><span style=\"font-weight: 400;\"> It aims to provide a stable and reliable foundation for the currency, which is intended to help<\/span><b> control inflation, encourage economic growth, restore public trust <\/b><span style=\"font-weight: 400;\">and <\/span><b>reduce dependence on foreign currencies.<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The introduction of the Zig represents Zimbabwe&#8217;s effort to <\/span><b>move away from past economic troubles and establish a more secure monetary future.<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Earlier Attempts:<\/b><span style=\"font-weight: 400;\"> The government had previously floated various ideas to replace the Zimbabwe dollar, including introducing gold coins to stem inflation and even trying out a digital currency.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">It is a strategic move towards utilizing the country\u2019s gold reserves to instill confidence in its currency.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Uniqueness:<\/b><span style=\"font-weight: 400;\"> It is unique because<\/span><b> it is backed by gold reserves, <\/b><span style=\"font-weight: 400;\">meaning its value is supported by the physical gold held by the government.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">In April, the ZiG started trading with <\/span><b>an exchange rate of 13.56 to the US dollar,<\/b><span style=\"font-weight: 400;\"> as set by Zimbabwe\u2019s central bank<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Challenges:<\/b><span style=\"font-weight: 400;\"> To establish credibility and stability, ensure acceptance and achieve economic stabilization amid a high inflation, fiscal deficits and external debt.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Course<\/a><\/span><\/p>\n<table style=\"width: 100.097%;\">\n<tbody>\n<tr>\n<th style=\"border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle; width: 100%;\">\n<h3><span style=\"font-size: 16pt; color: #000000;\"><strong>About Currency:\u00a0<\/strong><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Refers:<\/b><span style=\"font-weight: 400;\"> Money in the form of <\/span><b>paper or coins,<\/b><span style=\"font-weight: 400;\"> issued by a government and accepted at face value, is known as currency. It serves as a<\/span><b> means of exchanging commodities and services.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; color: #000000;\">In bartering, goods and services were exchanged directly for other goods and services.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; color: #000000;\">Currency has replaced bartering as the primary means of exchanging goods and services in the modern world.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>First Known Form of Currency: <\/b><span style=\"font-weight: 400;\">The Mesopotamian shekel was the first known form of currency. It was made about 5,000 years ago. Between 650 and 600 B.C., Lydian and Ionian aristocrats paid their soldiers with stamped silver and gold coins in Asia Minor.<\/span><\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table style=\"width: 99.9423%;\">\n<tbody>\n<tr style=\"height: 36px;\">\n<td style=\"width: 5573%; vertical-align: middle; text-align: center; border-style: solid; border-color: #000000; height: 36px;\" colspan=\"2\"><span style=\"font-size: 18pt;\"><b>Must Read<\/b><\/span><\/td>\n<\/tr>\n<tr style=\"height: 30px;\">\n<td style=\"width: 54.4983%; vertical-align: middle; text-align: center; border-style: solid; border-color: #000000; height: 30px;\"><strong><a href=\"https:\/\/pwonlyias.com\/stage\/ncert-notes\/\" target=\"_blank\" rel=\"noopener\">NCERT Notes For UPSC<\/a><\/strong><\/td>\n<td style=\"width: 5518.5%; vertical-align: middle; text-align: center; border-style: solid; border-color: #000000; height: 30px;\"><strong><a href=\"https:\/\/pwonlyias.com\/stage\/daily-current-affairs\/\" target=\"_blank\" rel=\"noopener\">UPSC Daily Current Affairs<\/a><\/strong><\/td>\n<\/tr>\n<tr style=\"height: 30px;\">\n<td style=\"width: 54.4983%; vertical-align: middle; text-align: center; border-style: solid; border-color: #000000; height: 30px;\"><strong><a href=\"https:\/\/pwonlyias.com\/stage\/blogs\/\" target=\"_blank\" rel=\"noopener\">UPSC Blogs<\/a><\/strong><\/td>\n<td style=\"width: 5518.5%; vertical-align: middle; text-align: center; border-style: solid; border-color: #000000; height: 30px;\"><strong><a href=\"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/\" target=\"_blank\" rel=\"noopener\">UPSC Daily Editorials<\/a><\/strong><\/td>\n<\/tr>\n<tr style=\"height: 30px;\">\n<td style=\"width: 54.4983%; vertical-align: middle; text-align: center; border-style: solid; border-color: #000000; height: 30px;\"><strong><a href=\"https:\/\/pwonlyias.com\/stage\/quiz\/\" target=\"_blank\" rel=\"noopener\">Daily Current Affairs Quiz<\/a><\/strong><\/td>\n<td style=\"width: 5518.5%; vertical-align: middle; text-align: center; border-style: solid; border-color: #000000; height: 30px;\"><strong><a href=\"https:\/\/pwonlyias.com\/stage\/mains-answer-writing\/\" target=\"_blank\" rel=\"noopener\">Daily Main Answer Writing<\/a><\/strong><\/td>\n<\/tr>\n<tr style=\"height: 30px;\">\n<td style=\"width: 54.4983%; vertical-align: middle; text-align: center; border-style: solid; border-color: #000000; height: 30px;\"><strong><a href=\"https:\/\/pwonlyias.com\/stage\/mains-previous-year-papers\/\" target=\"_blank\" rel=\"noopener\">UPSC Mains Previous Year Papers<\/a><\/strong><\/td>\n<td style=\"width: 5518.5%; vertical-align: middle; text-align: center; border-style: solid; border-color: #000000; height: 30px;\"><strong><a href=\"https:\/\/pwonlyias.com\/stage\/upsc-test-series-courses\/\" target=\"_blank\" rel=\"noopener\">UPSC Test Series 2024<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Zimbabwe rolled out a new gold-backed currency called the ZiG, or Zimbabwe Gold, in an effort to mitigate the currency instability and hyperinflation that has plagued the country for decades.<\/p>\n","protected":false},"author":11,"featured_media":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[],"paper-wise":[2089],"subject":[],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/110454"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/current-affairs"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=110454"}],"version-history":[{"count":3,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/110454\/revisions"}],"predecessor-version":[{"id":110600,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/110454\/revisions\/110600"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=110454"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=110454"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=110454"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=110454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}