Zimbabwe outlaws use of US dollar and other foreign currencies
HARARE: Zimbabwe’s Finance Minister Mthuli Ncube outlawed the use of the US dollar and a host of other foreign currencies in local transactions.
In 2009, Zimbabwe allowed the US dollar and other foreign currencies to be used as legal tender in the country after hyperinflation decimated the value of the Zimbabwean dollar.
Earlier this year, to pave the way towards ending so-called “dollarisation”, the country laid the foundations for a new Zimbabwean dollar by introducing an interim currency, the Real Time Gross Settlement dollar (RTGS) or “zollar”.
But since its launch in February, the RTGS has struggled amid black market speculation that has seen its value slide sharply against the US dollar.
Then on Monday government decree values the RTGS at par with the Zimbabwe dollar and mandates it be used as the country’s sole legal tender for local transactions with immediate effect.
“The British pound, United States dollar, 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,” read the decree.