After introducing the “RTGS dollar” in February this year,   Zimbabwe’s Reserve Bank has now resolved to reintroduce the Zimbabwean dollar. “With effect from 24 June 2019, the British pound, the United States dollar, the South African rand, the Botswana pula, and any other foreign currency whatsoever shall no longer be legal tender alongside the Zimbabwe dollar in any transactions,” says a Statutory Instrument (SI) No. 142 of 2019 published by the Zimbabwean government.

Prior to the announcement, transactions were made in any of the approved currencies that included the US dollar, British pound, South African rand, Botswana pula and RTGS dollar. The reintroduction of the Zim dollar as the official currency has therefore eliminated all other currencies from being used in business transactions. Subject to subsection 3 of Statutory SI 142, the Zim dollar will be the sole legal tender in Zimbabwe in all transactions.

The Zim dollar sunk in 2008 under  former leader Robert Mugabe, following the annual inflation rate which was peaked at 89.7 sextillion percent. The government had no choice but to scrap off the currency as most Zimbabweans refused to use it. However, last week , President Emmerson Mnangagwa announced that Zimbabwe will introduce its own currency before the end of the year.