Why didn't Zimbabwe have its own currency?
Since the country scrapped its own currency in 2009, Zimbabweans had relied at various times on US dollars, South African rands, as well as other foreign currencies, an electronic currency called the RTGS dollar, and what are called bond notes. The banks limited the number of dollars each customer could withdraw In 2016, the government introduced the bond notes and coins, which were supposed to be equivalent to the US dollar, to make up for the dollar cash shortage. But no-one had faith that they were equivalent in value and, on the black market, bond notes lost value against the US dollar. Then in February this year, the government introduced the Real Time Gross Settlement (RTGS) dollar, which was described as a new currency, but only existed electronically. US dollars and other foreign currencies were banned in June by the central bank, citing the need to return to normality. The government says the new notes will ease the cash shortage that has seen most people unable to withdraw their pay and savings. But the BBC's Shingai Nyoka in Harare says the government has a chequered past with money management and many people remain convinced that a huge cash injection in the middle of an economic crisis will stoke inflation. Since the reintroduction of the RTGS dollar local currency in February, inflation has soared. A loaf of bread now costs seven times as much as in January.DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
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