Zimbabwe shuns the usage of the US dollar, returns to the Zimbabwean dollar, here’s why

Zimbabwe's central bank has announced that effective Monday, November 11, 2019, it will begin circulating new banknotes in the country.

Zimbabwe shuns the usage of the US dollar, returns to the Zimbabwean dollar, here’s why

The move, according to the bank, will help ease a severe cash shortage as the country suffers a deepening economic crisis.

The bank has debunked fears that the move will fuel inflation, insisting that the new two- and five- dollar notes will not increase the overall money supply.

The introduction marks the final phase in the return of the Zimbabwe dollar.

In June this year, the central bank banned the use of the US dollar, introduced in 2009 to replace the inflation-hit local currency, citing the need to return to normality.

The government says the new notes will ease cash shortages that have seen most people unable to withdraw their savings.

Citizens and businesses fear

The major fear is that a huge cash injection in the middle of an economic crisis will stoke inflation. A loaf of bread that cost a dollar in January now costs 15 Zimbabwe dollars.

Since the reintroduction of a local currency, inflation has soared to triple digits.

The Zimbabwean government has stopped publishing an official inflation figure; it is noted to be about 300%.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Here are the 5 worst cities to live in Africa, according to Economist Intelligence Unit report

Here are the 5 worst cities to live in Africa, according to Economist Intelligence Unit report

10 African countries with the largest foreign exchange reserves

10 African countries with the largest foreign exchange reserves

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Top 10 happiest countries in Africa in 2022

Top 10 happiest countries in Africa in 2022

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

These 6 countries have the highest unemployment rates in Africa

These 6 countries have the highest unemployment rates in Africa

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job