Zimbabwe president praises re-introduction of local currency
ByFARAI MUTSAKA, ASSOCIATED PRESS HARARE, Zimbabwe — Jun 25,
Zimbabwe later introduced a local currency called the bond note in
2016 to trade alongside the
dollar, the British pound, the South African rand and other currencies. This
bond note has now become the Zimbabwe dollar.
Zimbabwe President Emmerson Mnangagwa on Tuesday praised the re-introduction of
the Zimbabwe dollar as the sole legal tender in the troubled country as a
"return to normalcy."
Zimbabwe had for 10 years used the U.S. dollar and other foreign currencies
after the Zimbabwean currency was dogged by hyperinflation.
Mnangagwa said it is the right time to scrap the use of foreign currencies,
saying Zimbabwe's economy is "now functional" enough to adopt the usage of a
single, local currency.
"We were living in an abnormal situation. We should actually be congratulated
for taking this step," he told reporters at a press conference on the sidelines
of a wildlife summit in the resort town of Victoria Falls.
"What we have done is we have gone back to normalcy," he said. "Normalcy is that
the country must have its own currency."
Mnangagwa said the possession of foreign currency is not outlawed, but people
will not be able to use it to buy items locally.
Finance Minister Mthuli Ncube on Monday announced the Zimbabwe dollar as the
sole legal tender. Before Ncube's notice, Zimbabweans were using a
multi-currency system dominated by the U.S. dollar after abandoning its own
currency in 2009.
Most Zimbabwean businesses and residents do not yet fully grasp the change, as
they had been mainly using U.S. dollars to avoid the rapidly devaluing local
Most traders pegged their prices on the dollar, resulting in prices in local
currency changing, as much as several times a day in response to rising black
market dollar rates.
With banks experiencing widespread shortages of cash, businesses have been
forced to resort to the illegal street market to get foreign currency in order
to restock. Zimbabwe's industry has been in the doldrums for more than a decade
and the country imports most basic items.
Inflation is close to 98%, according to official figures, the highest since the
2009 collapse of the local currency.
source abc News
Zimbabwe Dollar Returns, a Decade After It Became Worthless -
June 25 2019
Zimbabwe has brought back its own currency, the Zimbabwe dollar,
just over a decade after its usefulness was destroyed by hyperinflation.
A local quasi currency known as bond notes, which was introduced in 2016 but
can’t trade outside the country, and their electronic equivalent, the RTGS
dollar, will now be known as the Zimbabwe dollar.
The central bank said that effective immediately, currencies including the U.S.
dollar and the South African rand, in use since 2009, will no longer be accepted
as legal tender.
The authorities had abandoned the Zimbabwe dollar after inflation reached an
estimated 500 billion percent in 2008, according to the International Monetary
Fund. While the country has since used a basket of currencies from the continent
and abroad as well as bond notes and the RTGS$, some government departments and
agencies have until recently demanded payment in the greenback.
The central bank made it clear in its announcement that money held in
foreign-currency accounts will not be affected, but the step will be greeted
with alarm and memories of the lives wrecked and pensions and savings lost in
2008. Recollections of what effectively became a barter economy in a country
where a suitcase full of bank notes was needed to purchase a pair of jeans will
be hard to erase.
The central bank also announced a series of other measures, including raising
the rate on its overnight window to 50% from 15%, to buttress the currency.
“Any attempt by the officials to bring a new currency would require confidence,”
said Jee-A van der Linde, an economist at NKC African Economics in Paarl, South
Africa. “People aren’t sure that there’s something backing the currency. There’s
no way that something like this will be maintained. People will not trust the
currency. It will promote more off-market activity even more if that’s
In February, the central bank introduced the RTGS$ and said it and bond notes
would no longer be pegged to the U.S. currency. This precipitated a rapid
depreciation in both the newly introduced interbank rate and the black-market
value. Inflation, at 97.9%, is now at its highest since at least 2008.
This “will worsen the situation,”
said Christopher Mugaga, the chief executive officer of the Zimbabwe National
Chamber of Commerce. Companies “with real dollars will simply go underground,”
Finance Minister Mthuli Ncube said Monday’s announcement gives the central bank
“flexibility” to conduct monetary policy. The authorities in Zimbabwe have
previously said the central bank plans to establish a Monetary Policy Committee.
“We can also expect the creation of a monetary policy committee as part of the
micro institutions that are going towards stabilizing the
value of the currency,” he said on
bond notes are a form of banknote in circulation in Zimbabwe. Released by the
Reserve Bank of Zimbabwe the notes are stated to not be a currency in itself but
rather legal tender near money pegged equally against the U.S. dollar. In 2014
prior to the release of bond notes a series of bond coins entered circulation.
In November 2016, backed by a US$200 million African
Export-Import Bank loan, the Reserve Bank of Zimbabwe began issuing $2 bond
notes. Two months later, US$15 million worth of new five-dollar bond notes were
also released. Further plans for $10 and $20 bond notes were ruled out by the
Reserve Bank's governor John Mangudya.
The notes were not generally accepted by the Zimbabwean people, so the
government tried expanding the electronic money supply and issuing Treasury
The bond notes were still in circulation in 2018, although former Finance
Minister Tendai Biti said that they should be demonetised, as they were being
subject to arbitrage. In the campaigning for the 2018 elections, the bond notes
became a political issue, with the MDC Alliance calling for their replacement
with 'real cash'.
Despite the notes being notionally pegged to the US dollar, their value, like
the former Zimbabwean dollar, has collapsed, with everyday transactions using a
rate of $3 in bond notes to 1 US dollar as of January 2019.
In February 2019, the RBZ Governor, announced that the bond
notes would be part of the "values" that make up the new currency to be added
into the Zimbabwean market, the RTGS dollar along with the bond coins and
electronic balances. source
Zimbabwe’s central bank abolished the use of multiple currencies
as it tries to curb black-market currency trade that’s contributed to surging
With immediate effect, the U.S. dollar, South African rand and other foreign
currencies will no longer be recognized as legal tender in the southern African
nation, the central bank said in an official notice Monday in the capital,
Zimbabwe's official currency trades at a discount on the
Zimbabwe’s authorities have been struggling to close the gap between the
official and black-market exchange rates since the government effectively
devalued its currency, known as the RTGS dollar, in February and allowed it to
trade on the interbank market. The RTGS$ was changing hands at about 13 per
dollar on the streets on Harare on Monday, while the interbank rate is 6.32.
The central bank’s announcement may help stabilize inflation. Prices in Zimbabwe
are rising at the fastest pace since a hyperinflation episode a decade ago, when
the rate surged to an estimated 500 billion percent.
President Emmerson Mnangagwa has signaled that the country plans to abandon the
multi-currency system introduced in 2009, when it abandoned the Zimbabwe dollar,
to underpin efforts to stabilize the economy.
BREAKING NEWS -DIVINE INTEL UPDATE -JUNE 24TH Beny Wilson>
BREAKING: RBZ Reintroduces Zim Dollar, Bans Use Of All Foreign
Currencies With Effect From 24 June 2019
The Reserve Bank of Zimbabwe has with effect from 24 June 2019,
banned the use of foreign currencies as legal tender.
According to Statutory Instrument 142 of 2019, the United states dollar,
Botswana Pula and South Africa Rand are no longer legal tender in Zimbabwe.
Part of the SI reads:
Subject to section3, with effect from 24th June 2019, the British pound, United
States dollars, South African rand, Botswana pula and any other foreign currency
whatsoever shall no longer be legal tender alongside the Zimbabwe dollar in any
transactions in Zimbabwe.
6 Military Trucks Drove Into Harare Carrying Cargo Marked
“Abnormal,” And Within 48 Hrs, Mnangagwa Today Announces Zim Dollar’s Back.