INTERNACIONAL
Zimbabwe introduces new currency as depreciation and rising inflation stoke economic turmoil
HARARE, Zimbabwe (AP) — Zimbabwe on Friday launched a new currency to replace its previous one that in recent months has been battered by depreciation, and in some instances rejection by the population. Authorities hope the new measure will halt a currency crisis underlining the country’s yearslong economic troubles.
Reserve Bank of Zimbabwe Gov. John Mushayavanhu said the new currency will be called ZiG, and will be anchored on gold reserves and a basket of foreign currencies. It goes into effect on Monday.
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The Zimbabwe dollar has come under sustained pressure in recent weeks, making it one of the world’s worst performing currencies.
Since January, the Zimbabwe dollar lost over 70% of its value on the official market, and was plunging even further on the thriving but illegal black market.
Inflation increased from 26.5% in December last year to 34.8% this January before spiking to 55.3% in March, according to official figures.
Traders were increasingly rejecting lower denominations of the now scrapped currency, with many insisting on payment only in U.S. dollars, which are also legal tender in the southern African country.
«We are doing what we are doing to ensure that our local currency does not die. We were already in a situation where almost 85% of the transactions are being conducted in U.S dollars,» Mushayavanhu told reporters in the capital, Harare. People have three weeks to exchange the old notes with the new currency, he said.
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Friday’s announcement is the latest of a cocktail of currency measures undertaken by the Zimbabwean government since the initial spectacular collapse of the Zimbabwe dollar in 2009. The period saw the country at one point issuing a 100 trillion Zimbabwe dollar banknote before the government was forced to temporarily scrap its currency and allow the U.S. dollar to be used as legal tender.
The country re-introduced a domestic note in 2016, marking the beginning of another round of currency volatility highlighted by changes to currency policy that included the banning of foreign currencies such as the U.S dollar for domestic transactions in 2019. This was followed by the unbanning of the greenback a while later after few ordinary people took heed to the U.S dollar ban and the black market thrived, while the local currency quickly depreciated.
INTERNACIONAL
French elections: Riots erupt after left-wing coalition projected to win plurality of seats
Crowds of protesters and celebrators flooded the streets of Paris as French election results began pouring in on Sunday.
On Sunday, French Prime Minister Gabriel Attal announced his intent to resign after a far-left political coalition was poised to win a plurality of French parliamentary seats. The coalition had unexpectedly assembled before the snap elections began.
Tens of thousands of left-wing demonstrators gathered in Paris’s Place de la République on Sunday night to celebrate the news. Prime Minister Emmanuel Macron’s centrist coalition is projected to take second place.
The results were a huge upset for conservatives in France, who had hoped that Marine Le Pen’s National Rally would take power.
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Social media footage shows massive bonfires in Parisian streets as authorities confronted demonstrators while wearing riot gear.
Tear gas was released as rowdy protesters were arrested. Protesters were also recorded throwing Molotov cocktails in the streets and setting off smoke bombs.
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The left-wing coalition, which is called the Popular Front, is made up of France’s Socialist Party, the French Communist Party, a green political party called the Ecologists and France Unbowed.
The bloc has pledged to institute a number of measures if elected, including scrapping Prime Minister Emmanuel Macron’s pension reform and working towards establishing «a right to retire» at 60 years old.
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The coalition also pledges to increase wages for public sector employees, establish a wealth tax and raise France’s minimum wage.
Reuters and Fox News Digital’s Greg Wehner contributed to this report.
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