Zimbabwe halts use of own currency for one year
Apr 13, 2009 07:21 PM Category: Africa
According to a BBC News article dated April 12, 2009, Zimbabwe has suspended the use of the Zimbabwe dollar for at least a year following the legalization of foreign currencies (most notably the United States dollar and South African rand). "There was nothing to support the value of the Zimbabwean dollar," admitted Economic Planning Minister Elton Mangoma. As previously reported on this site, the use of foreign currency has been allowed since January to combat the hyper-inflation that quickly devastated the value of all Zimbabwean dollar-denominated notes, no matter how large. The legal and widespread use of foreign currency has coincided with consumer prices falling for three months in a row. The state-controlled Sunday Mail newspaper said the unity government of Mugabe and opposition leader Morgan Tsvangirai decided the Zimbabwe dollar should only be reintroduced when industrial output reaches about 60 percent of capacity from the current 20 percent average.