Zimbabwe's New Gold-Backed Currency Struggles to Gain Acceptance

Zimbabwe recently introduced a new gold-backed currency called the Zimbabwe Gold (ZiG) to try to boost the economy, but it is already losing value on the black market.

The new currency was introduced on April 5 at a rate of 13.56 ZiG to the US dollar, but the black market rate is already around 20 ZiG to the dollar.

Citizens and experts are skeptical that ZiG will succeed, since past attempts to introduce new currencies in Zimbabwe have failed with rapid inflation.

The government says ZiG is backed by $175 million in gold and mineral reserves and $100 million in cash to try to give it lasting value.

The central bank governor predicts ZiG could account for 50% of transactions in 2-3 years, but social media shows many refusing to accept the outgoing currency.