The Reserve Bank of Zimbabwe (RBZ) has significantly devalued its gold-backed currency, the Zimbabwe Gold (Zig), by 44%. This move saw the currency fall from 13.98 to 24.3 against the U.S. dollar.

This drastic decision is aimed at mitigating rising exchange rate volatility and inflationary pressures that have been impacting the Zimbabwean economy since August.

According to RBZ Governor John Mushayavanhu, the measure was deemed necessary to stabilize the economic situation.