In a bid to combat soaring inflation rates, Zimbabwe, situated in southern Africa, has unveiled a new gold-backed currency today, reports Ednews citing sozcu.com.

The newly introduced Zimbabwe Gold (ZiG) marks the third currency rollout by the nation in the past decade, amidst persistent economic challenges.

With inflation soaring to 55 percent in March, the move by the Central Bank, as reported by the BBC, aims to bring stability to the country's economy. The ZiG replaces the Zimbabwe dollar RTGS, which has witnessed a staggering three-quarters depreciation in its value this year alone.

Currently, approximately 85 percent of transactions in Zimbabwe are conducted using foreign currencies, predominantly the US dollar. Despite the introduction of ZiG, it is anticipated that the dollar will remain the preferred choice for many Zimbabweans in the foreseeable future.

The skepticism towards the Central Bank dates back to the crisis of 2008, when hyperinflation spiraled out of control, leading to the printing of 10 trillion Zimbabwean dollars worth of banknotes. Subsequently, the Central Bank ceased the circulation of its own currency and relied solely on foreign currencies such as the US Dollar and the South African Rand.

In a bid to regain economic stability, in late 2016, the Central Bank introduced the US dollar credit-backed bond note. However, promises of parity with the US dollar were shattered as excessive money printing led to the collapse of the currency.

Assurances from the current Central Bank leadership vow to prevent a similar scenario, pledging to refrain from excessive money printing in the future.