After several years marked by the circulation of quasi-currencies (substitutes close to the currency) to make up for the lack of liquidity, the central bank of Zimbabwe will replace its assets.
Indeed, the institution will soon release a new amount of local currency. The announcement was made Monday, Aug. 19 by officials of the Zimbabwean Ministry of Economy and Finance.
According to officials of the ministry, their department will first compile data on the country’s reserves before deciding on the amount of currency that will be used to support the new currency.
Speaking recently on one of his trips, Zimbabwean Minister of Economy and Finance Mthuli Ncube was reassuring: “We already have our own local currency, but these will be the first Zimbabwean dollar bills. which will be negotiated on a par with bonds “.
Shaken by a liquidity shortage and hyperinflation, Zimbabwe abandoned the Zimbabwean dollar in 2009. Harare preferred to use a basket of foreign currencies (US dollars, Rands …) to deal with this currency crisis.
With this in mind, Zimbabwe has also introduced “obligations” as well as dollar RTGS in electronic form. Unfortunately, these assets are not accepted outside the country. In June, the monetary authorities reintroduced the Zimbabwean dollar. But this did not prevent the local currency from continuing to depreciate against currencies including the dollar.
According to the latest estimates, the local dollar traded close to 10% of the greenback.
