Business / Economy
Zimbabwe adds Chinese Yuan, Rupee, Yen to the multi-currency system
29 Jan 2014 at 13:44hrs | Views
Zimbabwe has expanded the official multi-currencies basket to include Chinese Yuan, Australian dollar, Indian Rupee and the Japanese Yen, we can reveal.
This further dashes hopes of the return of the Zimbabwe dollar.
Co-acting Reserve Bank of Zimbabwe Governor Charity Dhliwayo announced this during her 2014 monetary policy statement in Harare today.
She said banks will simplify account opening requirements for the new currencies.
The southern African country ditched its local currency in 2009, after it had been rendered useless by hyperinflation which peaked at 231 million percent, in favour of a basket of multiple currencies that includes the United States dollar, South African rand and the Botswana pula among others.
Talk of Zimbabwean dollar return evokes sad memories for the majority of people in the country who lost their life earnings with the introduction of the multiple currency system.
At the height of the hyperinflation, the country became almost idle as industries closed down, while multi-national companies relocated to neighbouring countries and most local businesses were just operating at a loss.
The unemployment rate rose to over 80 percent and over three million people reluctantly left the country for menial jobs in neighbouring countries.
Although the new government has repeatedly tried to calm the market by dismissing rumours of an imminent return of the local currency, speculation has been rife that the Zanu PF-led government might prematurely re-introduce the discarded currency.
Speaking at the pre-national budget conference in Victoria Falls last year, Finance Minister Patrick Chinamasa ruled out the return of the Zimbabwean dollar and said he did not want to hear any more questions about the local currency.
"The multi-currency system will remain for the next five years," Chinamasa said.
This further dashes hopes of the return of the Zimbabwe dollar.
Co-acting Reserve Bank of Zimbabwe Governor Charity Dhliwayo announced this during her 2014 monetary policy statement in Harare today.
She said banks will simplify account opening requirements for the new currencies.
The southern African country ditched its local currency in 2009, after it had been rendered useless by hyperinflation which peaked at 231 million percent, in favour of a basket of multiple currencies that includes the United States dollar, South African rand and the Botswana pula among others.
At the height of the hyperinflation, the country became almost idle as industries closed down, while multi-national companies relocated to neighbouring countries and most local businesses were just operating at a loss.
The unemployment rate rose to over 80 percent and over three million people reluctantly left the country for menial jobs in neighbouring countries.
Although the new government has repeatedly tried to calm the market by dismissing rumours of an imminent return of the local currency, speculation has been rife that the Zanu PF-led government might prematurely re-introduce the discarded currency.
Speaking at the pre-national budget conference in Victoria Falls last year, Finance Minister Patrick Chinamasa ruled out the return of the Zimbabwean dollar and said he did not want to hear any more questions about the local currency.
"The multi-currency system will remain for the next five years," Chinamasa said.
Source - zimbabwefocus
