Zimbabwe to introduce a new currency in November
The Reserve Bank of Zimbabwe is set to introduce a new currency in November, a member of the bank’s Monetary Policy Committee announced.
Renowned economist Eddie Cross said the new currency would be introduced in a move set to curb current cash shortages in the country.
“He commended President (Emmerson) Mnangagwa for taking a bold decision to freeze accounts of companies suspected of fueling the instability of exchange rates, saying what is needed now is to act on such economic saboteurs,” Eddie Cross.
The Zimbabwe dollar, became moribund in 2009 following a spell of hyper-inflation.
It was replaced by a basket of multi-currencies including the U.S. dollar, the British pound, South African rand, Botswana pula, Japanese yen, and the Chinese yuan.
The Reserve Bank of Zimbabwe will be introducing a new currency in November to curb current cash shortages in the country. Video: Zodidi Dano/ African News Agency
The U.S. dollar remained the dominant currency but became scarce over time and pushed the central bank to introduce bond notes and bond coins in 2016 to plug the resultant cash gap.
The bond notes and coins were at par with the U.S. dollar at their introduction but lost value.It’s trading at around 14 to 1 U.S. dollar at the inter-bank rate.