Zimbabwe’s government will continue its multi-currency system, propped by the U.S. dollar, until 2030, according to a statement it released on Friday.
Note that the government had previously remarked that the multi-currency system would end in 2025.
This announcement triggered unpredictability in the banking sector, with certain banks refusing to give loans after 2025.
President Emmerson Mnangagwa had in the government gazette, rescinded the 2019 order which had given 2025 as the deadline.
The gazette had read:
“Settlement of any transaction or payment for goods and services in foreign currency will remain valid until the 31st December 2030,”
Economists have revealed that almost 80% of local transactions were in U.S. dollars amidst declining confidence in the Zimbabwean dollar.
Zimbabwe deserted its inflation-ravaged dollar in 2009, choosing instead to use foreign currencies, particularly the U.S. dollar.
The government re-launched the local currency in 2019, but it quickly lost value again.
In spite of the continued efforts by authorities to bolster confidence, the Zimdollar has weakened by over 80% this year, according to economists.
