Bloomberg/Waldo Swiegers

Economy

Central Bank of Zimbabwe bans the use of foreign currencies

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Last week, President Emmerson Mnangagwa signalled that his government plans to abandon the multi-currency system introduced in 2009 when the Southern Africa country abandoned the Zimbabwean dollar.

Monday 24, June 2019 BY KUDAKWASHE MUZORIWA

The Reserve Bank of Zimbabwe (RBZ) has abolished the use of multiple currencies as it tries to curb black-market currency trade that is contributing to the surging inflation.

In a statement, RBZ said that with immediate effect, the US dollar, South African rand and other foreign currencies will no longer be recognised as legal tender.

The central bank stated that the Zimbabwean dollar will be the sole legal tender in the country in all transactions, adding that the Zimbabwean dollar will refer to RTGS$ as well as bond notes and coins.

The RTGS$ and bond currency are at par with the Zimbabwean dollar and the central bank’s announcement is expected to stabilise inflation.

Zimbabwean authorities have been struggling to close the gap between the official and black-market exchange rates since the government effectively devalued its currency, known as the RTGS dollar, in February and allowed it to trade on the interbank market.

 

TAGS : RTGS$ , bond notes, Zimbabwean dollar, Reserve of Zimbabwe, President Emmerson Mnangagwa

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