News Column

More foreign bills now legal tender in Zim

January 30, 2014

HARARE : Zimbabwe approved domestic trading in the Chinese yuan, Indian rupee, Japanese yen and Australian dollar yesterday, in a move that will effectively make those currencies legal tender. Acting central bank governor Charity Dhliwayo said exporters and the public could use and "open accounts denominated" in those currencies. Zimbabwe was forced to abandon its own currency in 2009 amid chronic hyper-inflation and a deep economic crisis. President Robert Mugabe's government chose to adopt the US dollar, halting inflation and bringing some stability to the economy. The euro, South African rand, Botswana pula and British pound are already legal currency. But with the economy under pressure again, the bank appears eager to entice all the investors it can. Dhliwayo said the economy was faced with a severe liquidity crunch, which meant that local industry could not obtain credit, as well as high import costs and uncompetitive local products. - Sapa-AFP Daily News


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Daily News (South Africa)


Story Tools