Zimbabwe will not be rushed into abandoning foreign currencies as the government works toward a single-currency system, the Reserve Bank of Zimbabwe (RBZ) has said. The pledge comes as concerns grow over how and when the transition would affect foreign-currency holdings, contracts and day-to-day transactions.
“Everything that the Reserve Bank and Treasury will do will be driven by the market,” RBZ Deputy Governor Innocent Matshe said, stressing that a number of conditions must be satisfied before the country makes the switch.
- Advertisement -
Zimbabwe introduced a multicurrency system in 2009 after hyperinflation sharply weakened confidence in the local currency. The country later brought back a domestic currency but continued to recognize foreign currencies—most notably the U.S. dollar—as legal tender.
