Zimbabwe is considering a currency board to support the Zimbabwean dollar as inflation rises.

“The currency board issue is under consideration,” Ashok Chakraborty, a member of the central bank’s monetary policy committee, told an economic conference in the resort town of Victoria Falls on Thursday. “It has been done in 40 countries before, but it also requires a significant amount of reserve money. It is being looked into.”

The Currency Board must, among other requirements, peg all units of the national currency in circulation to a foreign currency. Zimbabwe will need about $700 million to support domestic currency, Chakraborty said.

Reserve Bank of Zimbabwe Governor John Mangudia did not return two calls to his cellphone seeking comment.

© 2022 Bloomberg

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