The Zimbabwean government stated in a statement on Friday that they planned to maintain their multi-currency system, which is based on the dollar, until 2030.
The government has indicated that the use of several currencies will be discontinued in the year 2025. Because of this, there was widespread unease in the banking industry, and as a result, many financial institutions refused to extend loans beyond the year 2025.
In a notice published in the official government gazette, President Emmerson Mnangagwa revoked an order from 2019 that established 2025 as the cutoff year.
“Settlement of any transaction or payment for goods and services in foreign currency, shall … be valid until the 31st December, 2030,” says the gazette’s headline.
A decline in confidence in the Zimbabwean currency has led to roughly 80% of local transactions being conducted in U.S. dollars, according to economists.
Zimbabwe stopped using its currency, which was worthless due to inflation and started using other currencies, primarily the US dollar, in 2009. In 2019, the administration decided to reinstate the regional budget. However, it quickly began to lose value again.
According to experts’ estimates, the value of one Zimdollar has decreased by more than 80 percent so far this year, despite the authorities’ repeated attempts to build trust.
It appears like Zimbabwe is adopting a more long-term view of the state of its economy, given that they have decided to continue using several currencies until the year 2030. It enables people and organizations to organize their financial actions with a degree of certainty, which benefits both parties.
The prolongation of Zimbabwe’s multi-currency system until 2030 is a deliberate measure to maintain economic stability and boost financial trust in the country. By providing customers with the opportunity to conduct business in a currency other than its own, the nation hopes to reduce the impact of currency-related issues and foster an atmosphere that favors commercial activity and investment.
