Central Bank Governor: ZiG Currency Undervalued by Half

Reserve Bank of Zimbabwe Governor John Mushayavanhu stated that the country's new currency, the ZiG, is undervalued by nearly half. He indicated that based on reserves and gold backing, it should be trading around ZiG15 to US$1. The ZiG, Zimbabwe's sixth currency attempt in 15 years, is backed by 2.5 tons of gold and US$100 million. Mushayavanhu acknowledged that market confidence remains a challenge for the currency's stability.