HARARE - Zimbabwe has hit a major economic milestone.
Annual inflation has dropped into single digits for the first time since 1997.
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Inflation slowed sharply to just over 4% last month from 15% in December.
The development is central to the government’s plan to make the gold-backed ZiG the country’s sole currency by 2030.
The ZiG is the country’s sixth currency experiment since 2009.
Officials say key benchmarks are being met.
Foreign assets backing the ZiG have surged to $1.2-billion, up from just $276-million dollars at launch.
Economist Tinashe Murapata explained the reason behind the drop.
Murapata also gave context about Zimbabwe's economy, saying, "the economy is 80-90% dollarised. We've seen results from some of the major companies on the ZSC, and one of which, I think their turnover is 91% USD and 9% ZiG."
Murapata said civil servants receive half of their salaries in ZiG.
Murapata explained there have been some industries in Zimbabwe showing growth but significant challenges to maintaining the inflation rate remain.