Zimbabwe Outlaws the Use of Foreign Currencies as Legal Money
In an effort to combat rising prices for essential goods and services caused by runaway inflation, the Zimbabwean government has enacted a ban on using the US Dollar and other foreign currencies as legal tender.
Zimbabwe’s Finance and Economic Minister, Mthuli Ncube, declared on Monday that starting June 24, 2019, transactions in Zimbabwe will no longer accept the British pound, US dollar, South African rand, Botswana pula, or any other foreign currency alongside the Zimbabwean dollar.
Due to persistent economic challenges and hyperinflation, Zimbabweans have grappled with the use of a mixture of currencies since the country abandoned its national currency in 2009. The US Dollar has been the predominant currency choice, followed by others like the Australian Dollar, British Pound, Chinese Yuan, Indian Rupee, Japanese Yen, Botswana Pula, and South African Rand.
The prohibition on foreign currencies applies to their use as legal tender only within Zimbabwe. Foreign-currency designated accounts will remain unaffected, allowing for foreign transactions. A new national currency is anticipated by the government in early 2020 after a decade-long absence of the Zimbabwean Dollar, notorious for having banknotes with denominations as high as 100 trillion due to hyperinflation. The government is diligently strategizing the launch of a successful currency, while President Emmerson Mnangagwa voices concerns about the country’s current challenge in managing the supply and circulation of available currencies.
