Zimbabwe abolishes multi-currency system

HARARE, ZIMBABWE - AUGUST 05: A man holds Zimbabwean Dollar Bond Notes on August 05, 2018 in Harare, Zimbabwe. Zimbabwe Electoral Commission (ZEC) officials have announced the re-election of President Emmerson Mnangagwa of the ruling Zimbabwe African National Union - Patriotic Front (ZANU-PF). The election was the first since Robert Mugabe was ousted in a military coup last year, and featured a close race between Mnangagwa and opposition candidate Nelson Chamisa of the Movement for Democratic Change (MDC Alliance). Deadly clashes broke out earlier in the week following the release of parliamentary election results, amid allegations of fraud by Chamisa and MDC supporters. (Photo by Dan Kitwood/Getty Images)

Harare-The Zimbabwe Government has with immediate effect abolished the use of multi-currency system heralding the official use of the local currency.

In a notice through Statutory Instrument 142 of 2009 the Minister of Finance Mthuli Ncube said the Zimbabwe dollar will be the sole currency for legal tender purposes.

“Subject to section 3 with effect from the 24^th June, 2019, the British pound, United States dollar, South African rand, Botswana pula and any other foreign currency whatsoever shall no longer be legal tender alongside the Zimbabwe dollar in any transactions in Zimbabwe” read the notice

The move comes in the wake of charges in for goods and services being pegged in forex. This had gone beyond the reach of many who are earning in local currency.

The move by the finance Minister has been met with mixed reactions from ordinary citizens.

“What it means is prices of basic commodities will soar again thereby making our lives more difficult, we are now between a rock and a hard place” said Steven Kasirori a vendor.

Others were of the opinion that if the Government was serious then they should deal with foreign currency dealers.

“They know the problem and they are only dealing with minor issues. Ques will be the order of the day as shortages of basic commodities loom. We are back to 2008. If the Minister is serious, then he should deal with the foreign currency cartels who are abusing young men and women on the streets” said business man Gift Chinoda

Fears are that prices will skyrocket or goods will disappear from shelves. Prices had gone out of control with most businesses charging in foreign currency.