Zimbabwe to introduce new currency

16 Jan 2019

cashZimbabwe is planning to introduce a new currency in the coming twelve months, in order to counteract financial struggles caused by a shortage of US dollars.

Zimbabwe had adopted foreign currencies since ceasing to make use of its local dollar in 2009.

Reuters reported that the country had been dealing with a slowdown of imported goods and that there has been not enough hard currency to back up the $10 billion of electronic money stored in local banks.

“On the issue of raising enough foreign currency to introduce the new currency, we are on our way already, give us months, not years,” said Zimbabwe’s finance minister, Mthuli Ncube.

South Africa’s finance minister, Tito Mboweni, backed the implementation of a new currency, calling it a good idea.

He said that on December 26, South African and Zimbabwean government representatives had met up to discuss Zimbabwe’s economy and its finance and banking sectors, while agreeing to work together to improve the country’s status.

He added: "Presidents will have to work together to ensure that whatever remaining sanctions in Zimbabwe are removed. Those sanctions are causing big problems. Because if you want to go and do anything that involves the US dollar and you are under sanctions, political leadership hopefully will really do something to remove the sanctions. It is key and central to the revival of the Zimbabwean economy."