The Reserve Bank of Zimbabwe is putting into circulation a new currency – Zimbabwe Gold (Zimbabwe Gold, or ZiG), writes MarketWatch with reference to its message.
ZiG will replace the Zimbabwean dollar and will be backed by gold, other precious metals and foreign currencies.
The new currency will help simplify monetary and financial relations, bring certainty and predictability to them, said the head of the national central bank John Mushayaavanhu.
The central bank will set the interest rate for borrowing in Zimbabwean gold at 20 percent against a global maximum of 130 percent for the former currency.
Banks will start converting account balances into the new currency on Friday. It will be put into circulation on Monday at a rate of 13.56 gold pieces per U.S. dollar, CNBC Africa reported.
Zimbabwe’s annual inflation accelerated to 55 percent in March from more than 47 percent a month earlier amid the collapse of the former national currency and the country’s economy’s reliance on the U.S. dollar.
The Reserve Bank of Zimbabwe also cited problems with change in payments, including its issuance in the form of coupons or candy.
The share of the U.S. dollar in international settlements within the SWIFT system rose to 46.5% in July from 39.4% a month earlier, according to the monthly RMB Tracker report released by SWIFT.
Bloomberg agency calls the dollar’s July performance a record high. Ten years ago, the currency accounted for just over a third of all settlement volume.
The U.S. dollar remains the leader in terms of share in international settlements. The second position is still occupied by the euro, whose share last month fell to a historically low 24.4% from 38.4%, the third – the pound sterling (7.6% in July against 6% a month earlier), the fourth – the yen (3.5% against 2.7%), the fifth – the yuan (3.1% against 2.2%).
In 2012, the single European currency held 46% of settlement volume. This is its peak figure.
Meanwhile, the share of the Chinese currency exceeded 3% for only the second time in the history of observations. In 2010, it was about 0.03%.
Volumes of currency purchase by Ukrainian population in January 2023 exceeded volumes of its sale by $564 million as compared to $463.2 million in December last year, this figure is growing for the sixth month in a row, the National Bank of Ukraine (NBU) said.
According to its website, if earlier the “net” purchase was formed mainly in the cash market, in December – almost equally in the cash and non-cash markets, in January it is already mainly in the cash market.
At the end of September last year, the National Bank raised the limit on the purchase of non-cash currency by physical persons from 50 thousand UAH to 100 thousand UAH a month, under its placement on deposit for at least three months, which stimulates such operations: in January, non-cash currency purchases rose to $ 523.9 million from $ 450.5 million in December, $362.2 million – in November.
The sales of non-cash hard currency, by contrast, decreased to $153.4 million from $220.2 million in December and $211.1 million in November.
As for cash currency, its purchase and sale decreased compared to December: purchase – from $1.425 billion to $1.268 billion, while sale – from $1.191 billion to $1.075 billion.
According to these data of the NBU, the turnover of the official foreign currency cash market in January this year amounted to 71.9% of the turnover in pre-war January 2022, while non-cash currency transactions – 60.6%.
As reported, the population bought $880.1 million more currency than sold, including $1010.0 million more cash currency bought than sold, according to official statistics, for 2022 as a whole.
At the moment, the dollar exchange rate in the cash market is about 39.9 UAH/$1, while the National Bank set the official rate from July 21, 2022, at 36.5686 UAH/$1. The dollar is quoted at about 0.6 hryvnia cheaper than a month ago.
Argentine Economy Minister Sergio Masa said work on the establishment of a joint Argentine-Brazilian currency will begin as early as this week, the Argentine press reported.
“There is a decision to start studying the parameters necessary to create a common currency, this concerns everything from taxation issues to the size of the economies and the role of central banks,” Masa said in a conversation with Argentine journalists.
“The goal is to give impetus to regional trade and reduce dependence on the U.S. dollar,” the minister added.
“We have to explore the mechanisms of commercial integration. I am not going to speak with false expectations, because this is only the first step in the long journey that Latin America must take,” Masa stressed.
However, the project initiated by Argentina and Brazil is not limited to these two countries. Other countries in the region may join the initiative in the future.
The idea of creating a common currency for the two countries was voiced at a recent meeting between the presidents of Argentina and Brazil, Alberto Fernandez and Luiz Inácio Lula da Silva.
The government of Ukraine has included participation in approximately 70 foreign exhibitions in the list of works and services, for import operations of which the National Bank is recommended to ensure the implementation of transfers, the Ministry of Economy has reported.
“The list, drawn up based on the results of a dialogue with industry associations and enterprises, includes about 70 specific exhibitions that will be held abroad in autumn 2022 – spring 2023. For example: Ukrainian Infrastructure Forum of Strategy Council in London, Fruit Logistica in Berlin, Agrotech 2023 in Polish Kielce,” the ministry said on its website.
There is also an opportunity for Ukrainian manufacturers to participate in international exhibitions of the furniture industry, international medical and pharmaceutical exhibitions.
The Ministry of Economy recalled that in September, Ukrainian exports of goods rose to a record high since the beginning of the war: $4.114 billion.
The National Bank of Ukraine (NBU) has increased from UAH 50,000 to UAH 100,000 (equivalent) the monthly limit on the purchase of non-cash foreign currency by citizens with subsequent placement on an irrevocable deposit for at least three months.
“Such changes will further reorient the demand of the population from foreign cash to non-cash, because transactions for the sale of non-cash currency by banks are carried out at a rate closer to the official than for the sale of cash, more convenient and safer,” the NBU website said on Friday.
As reported, with the outbreak of war on February 24, the National Bank banned the sale of non-cash currency to citizens, and on July 21 partially allowed it – up to UAH 50,000 per month on an irrevocable deposit of three months.
