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HomeAfricaZim to keep foreign currencies in circulation till 2012

Zim to keep foreign currencies in circulation till 2012

 Zimbabwe said Monday it would keep foreign currencies as legal tender in the country until 2012, when it expects the economy to have recovered enough to re-introduce the domestic currency.

The southern African country abandoned its currency – the Zimbabwe dollar – last year after hyper-inflation of more than one billion percent rendered it worthless.

In its place, Zimbabwe adopted all major foreign currencies, particularly the US Dollar, as legal tender to reign in inflation and stabilise the economy.

Since the adoption of the foreign currencies, inflation has come down to single digits and prices have stabilised, among other benefits.

“The multi-currency will be in place for the next two years. We have made it a d ecision that up to 2012 we are going to be in a multi-currency regime,” Economy Minister Elton Mangoma said.

“Zimbabwe is the only country in the world that does not have foreign exchange r isk,” he said.

Foreign investors have been particularly careful not to commit funds to the coun try if it would re-introduce the Zimbabwe dollar any time soon.

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