Zimbabwe: A Currency Change Takes Aim at Economic and Political Instability

Zimbabwe's central bank governor, John Mangudya, announced on Feb. 20 that his country once again has its own currency. Zimbabwe did not actually introduce a new currency, but rather modified its currency substitute, comprising bond notes, to function like a real currency. The new RTGS dollar takes its name from the official name of the bond note system, the Real Time Gross Settlement. Unlike the old system, RTGS dollars are not pegged to the U.S. dollar and will be allowed to trade freely against the U.S. dollar on an interbank foreign currency exchange market....