Zimbabwe’s central bank, the Reserve Bank of Zimbabwe (RBZ), has slashed 12 zeros from the local currency (Zimbabwe dollar), a move that will see the highest denomination of 100 trillion dollars revalued to 100 dollars, introducing new currency denominations, among other measures, in a bid to revamp the dilapidated economy.
Announcing the monetary policy statement themed,”Turning Our Difficulties into Opportunities-Exports, Forex, Exports” in Harare Monday RBZ governor, Gideon Gono, said the move is meant is to bring convenience to the public.
“The central Bank unveils yet another program through the removal of 12 zeros and the introduction of the following new currency denominations with immediate effect,” said Gono.
The new denominations range from one to 500 dollars and would be issued as one, five, 10, 20 50, 100 and 500 dollars notes while the old currency which had reached a trillion mark because of hyper-inflation gripping the Southern African country’s economy would cease to be legal tender as of June 30.
Other measures include allowing all business transactions to be effected in foreign currency as the country adopts a multiple foreign currency trading system.
“This is a tailor-made strategic intervention that is meant to bring convenience to the general public, as well as supporting productive efficiencies, whilst at the same time preserving the sovereign Zimbabwe dollar by giving it company among other currencies of choice, which is the essence of multi-currencying," Gono said.
Of late Zimbabweans have been shunning the use of the local currency, preferring the United States dollar and the South African Rand as the Zimbabwean dollar continues to lose its value in an inflationary environment, the worst in world history.
The central bank boss however defended the continued use of the local currency against other currencies.
“Even in the face of the current economic and political difficulties confronting the economy, the Zimbabwe dollar ought to and must remain the nation’s currency, so as to safeguard our national identity and sovereignty," said Gono.
Zimbabwe’s economy in the deep abyss for close to a decade now, with inflation officially pegged at 231 million percent, though independent economic analysts argue it could be more, has the worst record in world history.
The country’s economic performance has been worsened by political instability particularly between Zanu PF and opposition Movement for Democratic Change (MDC).
The parties have, however agreed to end their differences through the formation of a government of national unity, a political recipe many believe might be the answer to salvage the country’s economy from total collapse.
