Zimbabwe’s gold-backed currency loses half its value: Why and what’s next? | Business and Economy News

Less than six months after Zimbabwe launched yet another new currency, it was forced to devalue it, signalling new challenges for the Southern African country’s efforts to stand up a local currency and reduce dependency on the United States dollar.

In April, Zimbabwe’s central bank launched the ZiG, or Zimbabwe Gold, which was hyped as a stabiliser amid the country’s long-running currency and economic crisis.

But in late September, authorities slashed the value of the new gold-backed currency by more than 40 percent.

The ZiG is only one of several attempts Zimbabwean authorities have…