“Zimbabwe” extends the use of the “US dollar” in the economy for another 5 years after 2568, making it illegal as a payment.
On October 28, 2023, Bloomberg News reported that Zimbabwe President Emmerson Mnangagwa extended the use of the US dollar for economic transactions by another five years. This move was aimed at alleviating market concerns.
Zimbabwe has designated the dollar as an illicit payment by the end of 2568, making financial institutions reluctant to offer loans to individuals and businesses past the deadline. and reduce capital for long-term investment
This extension was in response to investor appeals, according to Persistence Gwanyanya, a member of the central bank's Monetary Policy Committee, who stated, "We just responded to the market's call. The reason is to maintain confidence while simultaneously supporting increased use of the Zimbabwean dollar without issuing an order."
The dollar remains the dominant currency in Southern Africa, as the value of the Zimbabwean dollar, reintroduced in 2019, has been eroded by high inflation. Imara Asset Management, the country's largest independent asset management company, which handles over $100 million, said last week that the economic strengthening is accelerating, making it difficult for the government to devalue the dollar.
Data from the Zimbabwe National Bureau of Statistics shows that 80% of all economic transactions in the country are now conducted in US dollars, up from 75%.
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