From Reuters:
“Zimbabwe extends multi-currency system to 2030”
(A man poses with Zimbabwe's new two dollar banknote as
customers queue outside a bank in Harare, Zimbabwe, November 12, 2019.)
Zimbabwe's government will maintain its multi-currency
system, anchored by the U.S. dollar, to 2030, it said on Friday. The government
had previously said that the multi-currency system would end in 2025. This had
triggered uncertainty in the banking sector, with some banks refusing to give
loans past 2025. In a government gazette, President Emmerson Mnangagwa repealed
the 2019 order which had given 2025 as a deadline. "Settlement of any
transaction or payment for goods and services in foreign currency, shall ... be
valid until the 31st December, 2030," reads the gazette.
Economists say nearly 80% of local transactions are in U.S.
dollars amid waning confidence in the Zimbabwean dollar. Zimbabwe abandoned its
inflation-ravaged dollar in 2009, opting instead to use foreign currencies,
mostly the U.S. dollar. The government reintroduced the local currency in 2019,
but it rapidly lost value again. Despite repeated efforts by authorities to
boost confidence, the Zimdollar has weakened by over 80% this year, according
to economists.
^ Having so many Official Currencies seems very confusing. ^
https://www.reuters.com/markets/currencies/zimbabwe-extends-multi-currency-system-2030-2023-10-27/
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.