From trading at around 210 Zimbabwean dollars to $1 at the beginning of March, it is now trading at 400 to $1 and black market dealers are selling it for $450. In addition, hyperinflation has reduced the purchasing power of citizens.īarely three years after the reintroduction of the Zimbabwe dollar, its value has plunged dramatically. Unemployment is at more than 90 percent, according to the Zimbabwe Congress of Trade Unions (ZCTU). Now, the Southern African country is once again in the middle of a severe economic crisis. But when the pandemic hit, Harare had to allow some payments in foreign currency. But by 2019, it had tanked and was trading at a 400 percent discount to the greenback.ĭespite all the warnings, central bank chief John Mangudya was not dissuaded.Īuthorities banned payments in foreign currency in June 2019, to give the Zimbabwean dollar a fighting chance upon relaunch. Zimbabwe’s surrogate currency, the bond note, had been touted as being of equivalent value to the US dollar in 2016. “The fundamentals are definitely not right to sustain any new currency,” Victor Bhoroma, an independent Harare-based economist told the press at the time. The country’s economists warned against the move. Harare, Zimbabwe – In early 2019, Zimbabwe’s central bank announced plans to bring back the Zimbabwe dollar as legal tender after a decade of using the US dollar and seven other international currencies because raging hyperinflation had run the local currency aground.
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