The International Monetary Fund has cautioned Zimbabwean authorities to carefully consider the potential risks of issuing a gold-backed digital currency, and instead suggested liberalizing the foreign exchange market. The IMF's warning comes after the Reserve Bank of Zimbabwe began issuing gold-backed digital coins to slow down local demand for US dollars. The IMF spokesperson emphasized that a careful assessment should be conducted to ensure the benefits of the measure outweigh the potential risks, including macroeconomic and financial stability risks, legal and operational risks, governance risks, and the cost of forgone FX reserve. The IMF also suggested sticking to conventional solutions, such as maintaining a tight monetary policy.