July 17, 2018

Zimbabwe abandons local dollars

Zimbabwe abandons local dollars

There are many songs about the unity of Africa and to drive home this unity, there have been calls from some quarters for a single currency for all African countries, something in the footsteps of the Euro.

When you have a country like Zimbabwe whose currency has one hundred billion and one hundred trillion dollar bills, it makes one wonder how stable this unified currency will be.

However, Zimbabwe is taking steps in what is hopefully the right direction and is phasing out its local currency, formalising a multi-currency system introduced during hyper-inflation.

Foreign currencies like the US dollar and South African rand have been used for most transactions since 2009.

Local dollars are not used except high-denomination notes sold as souvenirs.

But from Monday, Zimbabweans can exchange bank accounts of up to 175 quadrillion (175,000,000,000,000,000) Zimbabwean dollars for five US dollars.

Higher balances will be exchanged at a rate of Z$35 quadrillion to US$1. Read more


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