PESA’s Post

The Allure of #Gold:  A growing global trend as paper currencies FLOAT to zero.  How can you not notice?  Zimbabwe plans to fully replace the dollar with its gold-backed currency and make it the sole legal tender as early as 2026. The country has also indicated that it intends to leverage the currency for international acceptance and use. Let's watch what happens. The country obviously does not have the best track-record with regards to corruption. However, gold has served as a excellent anchor throughout history.  Could this be the start of an avalanche?  Zimbabwe also wants to join BRICS.  Africa is becoming increasingly proactive in leveraging gold to strengthen its reserves, and other nations are slowly starting to hint at backing its currency with gold. Gold Telegraph

Zimbabwe has recently announced the launch of a new currency, Zim Gold (ZiG), backed by the country's gold reserves. This initiative aims to stabilize the rapidly devaluing Zimbabwean dollar (ZWD). The introduced rate will be set at 13.56 per dollar, and banks are expected to convert their current ZWD into ZiG. “A new currency every five years now seems to be the norm” according to economist Tinashe Murapata. Despite numerous attempts by the government to stabilize the current dollar, none have proved effective, leading to instances where citizens have resorted to using the paper currency as toilet paper. Is Zimbabwe’s gold-backed currency also signaling a growing global interest in gold-pegged currencies or even gold itself?

Central Bank of Uzbekistan Expands Gold Purchases, Reduces Currency Interventions The Central Bank of Uzbekistan increased its gold purchases by 12% in Q3 2024, spending 29.5 trillion UZS on gold from local producers. Rising demand for gold, driven by external economic conditions and geopolitical conflicts, pushed gold prices to between $2,450 and $2,650 per troy ounce. Foreign exchange interventions dropped significantly to 6.9 trillion UZS, nearly three times lower than in Q2. The Central Bank attributed this reduction to seasonal factors and increased foreign currency inflows, ensuring market liquidity. For more: https://lnkd.in/djMRX6ss #UzbekistanNews #GoldMarket #CentralBank #KunUz

Zimbabwe introduced its new gold-backed currency, ZiG, on Monday, aiming to combat recurring inflation challenges. The move replaces the RTGS Dollar, which had seen a significant devaluation this year. Bank balances were transitioned over the weekend, with new banknotes set to circulate by month-end. This marks Zimbabwe's third currency re-launch in a decade, reflecting ongoing economic struggles. Some key points to note are: 🔴 Zimbabwe's new currency is backed by 2.5 tons of gold and foreign currency reserves worth about R5.4 billion. 🔴 The ZiG debuted stronger than the rand, but it can't be used to buy fuel in Zimbabwe. 🔴 The Reserve Bank of Zimbabwe vowed to stop the wanton printing of the local currency. The introduction of ZiG aims to restore stability, backed by foreign currency and gold reserves. How do you feel about this new development? #Zimbabwe #CurrencyReform #GoldCurrency #ZiG

Foreign Currency Supply Outpaces Demand in Uzbekistan in Early 2024 The Central Bank of Uzbekistan's financial stability review for the first half of 2024 revealed that foreign currency supply outpaced demand, helping to stabilize the domestic foreign exchange market. Commercial banks saw a 13% year-on-year reduction in the gap between currency purchases and sales, while citizens sold $7.2 billion in foreign currency, a 31% rise compared to 2023. Despite these developments, the Uzbek som (UZS) depreciated by only 1.63% against the US dollar during this period, with a slight appreciation of 0.5% in June. Experts attribute the UZS’s temporary strength to factors such as Eurobond issuance, rising gold prices, and Central Bank interventions, though they caution this trend may not last. For more: https://lnkd.in/dubyhhFR #UzbekistanNews #Currency #Economy #ForeignExchange #Kunuz

New Zimbabwean Currency ZiG To Commence Circulating Starting April 30 In his first Monetary Policy Statement (MPS) called 'BACK TO BASICS: Recalibrating the Monetary Policy Framework to Anchor Currency, Exchange Rate and Price Stability,' governor John Mushayavanhu introduced a new national currency called Zimbabwe Gold (ZiG) which is set to roll out on April 30th, 2024. "With effect from 5 April 2024, banks shall convert the current Zimbabwe dollar balances into the new currency which shall be called Zimbabwe Gold (ZiG) to foster simplicity, certainty, and predictability in monetary and financial affairs. The new currency will co-circulate with other foreign currencies in the economy." said John Mushayavanhu in the MPS. The old Zimbabwean dollar will still be used for 21 more days after April 5th, during which time people can exchange it for ZiG. The Reserve Bank of Zimbabwe plans to launch an intensive educational campaign on the security features of ZiG notes and coins. ZiG will be backed by a combination of foreign exchange reserves and precious minerals, primarily gold. The notes will come in denominations of 1, 2, 5, 10, 50, 100, and 200 with half and quarter ZiG coins available. The introduction of ZiG is a strategic move by Zimbabwe to stabilize its economy and enhance confidence in its monetary system. According to Reserve Bank of Zimbabwe governor John Mushayavanhu. This will be a significant change for the country's monetary system. Find out more about the MPS and details on the ZiG here: https://t.co/XFTk7T054b #ZimbabweGold #CurrencyTransition #RBZ #FinancialInclusion #MonetaryPolicy #Zimbabwe #ZiG

South Africa's International Liquidity Position 2024 🌍 South Africa's international liquidity position in 2024 reflects declining USD reserves but higher rand values due to currency depreciation. 💰 Gold reserves fell by 4.5%, yet prices remain strong year-over-year. Key commodities hint at inflation trends and possible SARB interest rate moves in January 2025. 📉 Global factors, such as Trump's return, could spark volatility for the rand. Discover more: https://shorturl.at/001CD #SouthAfrica #Economy #Liquidity #Gold #Commodities #Inflation #InterestRates #SARB #RandVolatility

"Zimbabwe has officially launched a new gold-backed currency." - Zimbabwe! 🇿🇼 has just launched a new gold-backed currency called the ZiG (Zimbabwe Gold) to combat inflation and stabilize its economy. - The ZiG will replace the struggling Zimbabwean dollar and will be backed by a basket of reserves, including foreign currency and precious metals like gold. - This move is aimed at bringing simplicity, certainty, and predictability to Zimbabwe's financial landscape. 💹 - Starting today, banks will convert existing Zimbabwe dollar balances into the new ZiG currency, which will be available in seven denominations ranging from 1 to 200 ZiG. 🏦 -This new gold-backed currency marks an important step for Zimbabwe in tackling its economic challenges and setting a foundation for a more stable financial future

⚡️ Foreign Reserves of Uzbekistan ⚠️ The Central Bank of Uzbekistan recently published statistics showing a 5.2% reduction in the country's gold and foreign exchange reserves compared to the same period in the previous year. As of the beginning of March 2024, 75% of the reserves were gold, 23% were foreign exchange (mainly US dollars), and 2% were other assets. 📉 The decrease in reserves can be attributed to a 25% reduction in the foreign exchange component, which decreased from $10.07 billion in March 2023 to $7.55 billion by March 2024. The Central Bank explained that this reduction was caused by the repayment of debt obligations to foreign creditors. 🔼 At the same time, the value of gold reserves increased by 5.5%, despite a reduction in physical gold in reserves from 12.6 million troy ounces to 11.9 million troy ounces. The value of gold reserves increased from $22.84 billion in 2023 to $24.1 billion in 2024, as the price of gold increased by about 12% during this period. #Uzbekistan #investments #piamg #ForeignReserves #CentralBank