Zimbabwe Bans Use of All Foreign Currencies
The Reserve Bank of Zimbabwe has with immediate effect banned the use of all international currencies as a means of trade in Zimbabwe, Finance Minister Mthuli Ncube said on Monday, 24 June 2019.
According to the Statutory Instrument (SI) 142 of 2019, released on Monday, the US dollar, Botswana pula and South Africa rand are no longer accepted as legal tender in Zimbabwe.
The SI reads: “The British pound, United States dollar, South African rand, Botswana pula and any other foreign currency whatsoever shall no longer be legal tender alongside the Zimbabwe dollar in any transactions in Zimbabwe.”
However, the new regulation will not affect foreign currency accounts. They will continue to be operated in the same currency in which they were opened.
Zimbabwe has been using multiple currencies since the abolishment of the Zimbabwe dollar in 2009 but the government recently introduced the RTGS dollar, which is now the sole legal tender for all transactions.
The ban comes as an attempt to end a decade of dollarisation. The central bank has also increased its overnight lending rate to 50% from 15% as part of a measure to protect the RTGS dollar.
