Zimbabwe's latest money makeover is crashing and burning. The brand-new ZiG currency barely limps along, proving yet another failed attempt to remove the US dollar from the economy's driver's seat.
Born with fanfare on April 8, the Zimbabwe Gold currency quickly revealed its weakness. Banks struggle to keep it alive despite throwing massive financial firepower at the problem. Slashing interest rates, pumping gold reserves, and desperately trying to stabilize exchange rates haven't rescued the struggling cash.
Economic experts paint a bleak picture. The currency hardly works anywhere meaningful. People can barely buy bread with the highest denomination note. Utility payments and partial government wages represent its only lifeline. Essentials like medicine, rent, and fuel still demand cold, hard US dollars.
Monetary authorities remain stubbornly optimistic. Central bank leaders keep promising commitment despite mounting evidence of failure. Skyrocketing gold prices haven't helped. Financial strategists argue the currency's reserves remain pathetically small and ineffective.
Political survival might be the ZiG's last hope. Economists predict another short-lived experiment. Zimbabwe keeps churning out currencies faster than most countries change governments. Each new attempt crashes harder and faster than the last. The ZiG looks set to join a long line of monetary misadventures.
Born with fanfare on April 8, the Zimbabwe Gold currency quickly revealed its weakness. Banks struggle to keep it alive despite throwing massive financial firepower at the problem. Slashing interest rates, pumping gold reserves, and desperately trying to stabilize exchange rates haven't rescued the struggling cash.
Economic experts paint a bleak picture. The currency hardly works anywhere meaningful. People can barely buy bread with the highest denomination note. Utility payments and partial government wages represent its only lifeline. Essentials like medicine, rent, and fuel still demand cold, hard US dollars.
Monetary authorities remain stubbornly optimistic. Central bank leaders keep promising commitment despite mounting evidence of failure. Skyrocketing gold prices haven't helped. Financial strategists argue the currency's reserves remain pathetically small and ineffective.
Political survival might be the ZiG's last hope. Economists predict another short-lived experiment. Zimbabwe keeps churning out currencies faster than most countries change governments. Each new attempt crashes harder and faster than the last. The ZiG looks set to join a long line of monetary misadventures.
