Hyper-Inflation: Zimbabwe Scraps Local Currency

Hyper-Inflation: Zimbabwe Scraps Local Currency

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Zimbabwean President Robert Mugabe addresses on February 28, 2009 his guests during his birthday party held in Chinhoyi 115 km from Harare, Zimbabwe. President Mugabe turned 85 on the 21st of February. (Photo Credit: AFP PHOTO/Desmond Kwande)

Zimbabwe is to scrap out its local currency, says the country’s central bank, formalising a multi-currency system introduced during hyper-inflation.

Other Foreign currencies such as US dollars and South African rand have been in use in Zimbabwe since 2009.

The local dollars used only as high-denomination notes sold as souvenirs.

However, from Monday, June 15, 2015 Zimbabweans can exchange bank accounts of up to 175 quadrillion (175,000,000,000,000,000) Zimbabwean dollars for five US dollars.

Zimbabwean Dollar
Zimbabwean Dollar

The exchange rate for higher balances is Z$35 to US$1.

Zimbabwe’s central bank governor, John Mangudya said “WE cannot have two legal currency systems.

“We need therefore to safeguard the integrity of the multiple currency system or dollarization in Zimbabwe.”

The deadline for Zimbabweans to exchange their local currency is on Wednesday, September 30, 2015

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