Zimbabweans to use nine different currencies
Acting Zimbabwe central bank governor Charity Dhliway addresses a conference in Harare on January 29, 2014. Zimbabwe has approved domestic trading in the Chinese yuan, Indian rupee, Japanese yen and Australian dollar, in a move that will effectively make those currencies legal tender. PHOTO | JEKESAI NJIKIZANA
What you need to know:
- Zimbabwe introduced the multi-currency system in 2009 in response to runaway inflation
- The adoption of multiple currencies helped Zimbabwe stem hyperinflation, which peaked at 500 billion percent in 2008
HARARE
The Reserve Bank of Zimbabwe (RBZ) has announced the adoption of four more currencies in an attempt to address cash shortages in the economy.
The currencies of China, India, Japan and Australia are set to be legal tender and will be used alongside the US Dollar, South African Rand, Botswana Pula, British Pound and the Euro.
Zimbabwe introduced the multi-currency system in 2009 in response to runaway inflation.
“Trade and investment ties between Zimbabwe, China, India, Japan and Australia have grown appreciably,” said RBZ acting governor Charity Dhliwayo. “It is against this background of growth in trade and investment ties that in the 2014 national budget, the minister of finance and economic development underscored the importance of including other currencies in the basket of already circulating currencies.”
She said exporters and the general public could open accounts in the various currencies in the basket.
The adoption of multiple currencies helped Zimbabwe stem hyperinflation, which peaked at 500 billion percent in 2008.
President Robert Mugabe’s government was forced to dump the Zimbabwe dollar in 2009.
Zimbabwe has been trying to promote trade and investment with Asian countries after the veteran ruler’s inner circle was slapped with sanctions by western countries for alleged human rights violations.
Dr Dhliwayo also said the RBZ would assume its role of banker to government on March 31.
The bank would resume its lender of last resort function after government agreed to inherit its $1.35 billion debt and recapitalise it to the tune of $200 million.
