A few days ago on April's fools day I jokingly posted that BRICS was launching a new currency based on a basket of goods like gold... Well, it was a joke but I also said it wouldn't surprise me if it came to be true.

Well, today, just few days later we get this:

Zimbabwe might not be a BRICS member, but it's BRICS friendly and has asked for membership. And sure it's not an economic powerhouse...but a start is a start.

Anyways, the name of the new gold-backed currency is ZiG and it will permanently replace the failing local dollar in about 3 weeks. The hope is that it will address the current monetary turmoil where all the previous money printing has essentially rendered the current currency...worthless.

It will initially be valued at 13.56 to the US dollar and the current administration hopes it will provide stability due to being backed by a mix of foreign currency reserves and precious metals, mainly gold.

The total reserves of gold the Reserve Bank of Zimbabwe owns today is a bit over one tonne in its own vaults and 1.5 tonnes held offshore, which some economists believe might not be enough.

In total the reserves are worth about 285 million USD which John Mushayavanhu, the governor of Zimbabwe claims are more than three times enough to cover for the ZiG currency being issued

“With effect from today … banks shall convert the current Zimbabwe dollar balances into the new currency,” source

For now, the US dollar, which accounts for the vast majority of transactions, will remain legal tender.

You can read more on this story if you want on Al Jazeera.

How will this playout in the end for Zimbabwe...Only time will tell :)

It does sound bullish for gold though! And it's clear more and more countries want to distance themselves from the dollar.

Will other countries follow suit? I have a feeling the next one won't be taking long!

And I am just glad that other than crypto I have a respectable stack in gold and silver. :)

Stack on!!!

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