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Zimbabwe proposes introduction of gold-backed Zim dollar

Posted By admin On August 25, 2009 @ 3:26 am In Money Watch | Comments Disabled

Reuters [1]
Tuesday, August 25, 2009

Zimbabwe’s central bank governor Gideon Gono on Thursday proposed the introduction of a gold-backed local currency, which was destroyed by hyperinflation and replaced by multiple foreign currencies in January.

A unity government formed by rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai in a bid to end a political crisis introduced multiple foreign currencies to stop sky-rocketing inflation and revive the economy.

But Gono, a Mugabe ally whose reappointment last year has been opposed by Tsvangirai, says the shortage of foreign currencies in the country was hurting economic recovery efforts.

In an article he wrote in the state-controlled Herald newspaper, Gono urged the re-introduction of the Zimbabwe dollar to ease the liquidity crunch, but said this was not a call for “a blind return to the money printing press”.

Full article here [1]

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