Zimbabwe ends foreign currency use as inflation spirals

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Zimbabwe ends foreign currency use as inflation spirals -

HARARE: Zimbabwe announced on Monday that it would abandon the use of foreign currencies which replaced the local dollar that was wiped out by hyperinflation ten years ago.

The central bank said that legal tender would be only be the new “Zimbabwe dollar”, which would be made up of the two local currencies — bond notes and “RTGS” — that were introduced as US dollar banknotes dried up. The currency crisis has created three tiers of pricing — one price in US dollar cash, and two far higher prices for paying in bond notes or electronic RTGS.

In 2009, hyperinflation peaked at 500 billion percent under Mugabe after seizures of white-owned farms triggered a collapse in the key agricultural sector.

 

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