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Zimbabwe ends foreign currency use as inflation spirals

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AFP Harare
Last Updated : Jun 24 2019 | 10:30 PM IST

Zimbabwe announced on Monday that it would abandon the use of foreign currencies which replaced the local dollar that was wiped out by hyperinflation ten years ago.

President Emmerson Mnangagwa has promised to introduce a new national currency soon, in the latest attempt to turn around an economy wrecked under his predecessor Robert Mugabe.

Zimbabweans have recently endured another bout of sharply rising prices, with official inflation now at nearly 100 per cent -- the highest since the hyperinflation era.

The central bank said that legal tender would be only be the new "Zimbabwe dollar", which would be made up of the two local currencies -- bond notes and "RTGS" -- that were introduced as US dollar banknotes dried up.

The US dollar, South African rand and other foreign currencies will "no longer be legal tender alongside the Zimbabwe dollar in any transactions," the bank said in a statement.

"Bond notes and RTGS dollars are at par with the Zimbabwe dollar."
"We will have exchange rates going up and inflation going up again," independent economist Gift Mugano to AFP. "It could be a disastrous measure."
"People will not trust the currency."

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First Published: Jun 24 2019 | 10:30 PM IST

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