Zimbabwe adopts Asian currencies

Comment on this story


Yuan

Reuters.

One-hundred Yuan notes are seen in this picture illustration.

Harare - Zimbabwe's central bank announced Wednesday it would accept the Chinese yuan and three other Asian currencies as legal tender as economic relations have improved in recent years.

“Trade and investment ties between Zimbabwe, China, India, Japan and Australia have grown appreciably,” said Charity Dhliwayo, acting governor of the Reserve Bank of Zimbabwe.

Exporters and the public can now open accounts in yuans, Australian dollars, Indian rupees and Japanese yens, Dhliwayo said. Zimbabwe abandoned its worthless currency in 2009.

It accepts the US dollar and the South African rand as the main legal tender. Their use has helped to stabilize the economy after world-record inflation threw it into a tailspin.

Independent economist Chris Mugaga said the introduction of the Asian currencies would not make a huge difference to Zimbabwe's struggling economy.

“It is Zimbabwe's Look East Policy, which has forced this, and nothing else,” he said.

President Robert Mugabe has sought to boost economic relations with Asia after his relations with the West came under strain over his policy of seizing white-owned farms.

Chinese investors have over the past two decades entered diamond mining, construction and retail sectors in the south-east African country.

Sapa-dpa


sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

     

Join us on

IOL-Social networks IOL-Social networks IOL-Social networks IOL-Social networks

Business Directory