Table of Contents
- 1 June 24th Update: Zimbabwe has a new legal tender, the Zimbabwe Dollar
- 2 So what does this mean?
- 2.1 Zimbabwe Dollar FAQ’s
- 2.1.1 #1. What makes up the Zimbabwean Dollar?
- 2.1.2 #2. So what has changed?
- 2.1.3 #3. Who can demand payment in forex?
- 2.1.4 #4. Does that mean if I have forex in my hand I can’t buy from the shops with it?
- 2.1.5 #5. What about my USD’s/forex in an FCA account?
- 2.1.6 #6. Will duty be payable in Zimbabwe Currency or in foreign currency?
- 2.1 Zimbabwe Dollar FAQ’s
- 3 How I see the current Zimbabwe currency situation
- 4 Read the new Statutory Instrument 142 of 2019
June 24th Update: Zimbabwe has a new legal tender, the Zimbabwe Dollar
If you were not aware, Zimbabwe was running on a multi-currency system where you could pay for goods and services using multiple currencies (USD, Rands & Local Currencies etc) but as of the 24th of June 2019 that all changed.
Below you will be able to watch the announcement of the new Zimbabwe dollar.
A very interesting video indeed…
Zimbabwe Dollar Announcement
So what does this mean?
This is a great question and one that not many people in fully understand.
There are different ideas being spoken on different threads but from my understanding, this is what I understand…
- The official currency for Zimbabwe is the Zimbabwe Dollar
- Using USD And Other Currencies Is Now Banned
Zimbabwe Dollar FAQ’s
Some common questions and answers for the new economic situation of Zimbabwe.
#1. What makes up the Zimbabwean Dollar?
The Zimbabwean Dollar is made up of RTGS balances, bond notes and bond coins, all unpopularly known as RTGS dollars.
#2. So what has changed?
Prior to yesterday, you were able to make a payment using various foreign currencies (multi-currency system) but since yesterday you can only settle debts/payments using the Zimbabwean dollar which is the legal tender.
That means anyone or any shop that denies accepting RTGS, bond notes and coins (Zimbabwean dollars) to make a payment are violating the law of the land and if you report them they will be in for it.
#3. Who can demand payment in forex?
Airlines are the only organisations that are allowed to demand payments in USD/forex.
#4. Does that mean if I have forex in my hand I can’t buy from the shops with it?
If you have USDs you have to go to a bank or bureau de change and change it to get the Zimbabwe dollars.
#5. What about my USD’s/forex in an FCA account?
Mthuli Ncube says that money in USD in FCA accounts is yours and you can keep it there (in the bank) or you can do whatever you like with it except that when you want to buy something in a shop, you’d have to change the USD into Zimbabwean Dollars.
In a nutshell, your USDs in the FCA are still intact and they haven’t been converted into Zim dollars.
#6. Will duty be payable in Zimbabwe Currency or in foreign currency?
Duty for selected “luxury” goods is still payable using foreign currency. And yes you will pay the duty for your car with forex.
How I see the current Zimbabwe currency situation
Well, this is taking the country back to when it was in dire straights back in 2008, which if we remember was not a great time in the history of Zimbabwe.
The majority of Zimbabwe’s businesses run on an import basis, meaning, their products are brought in to be sold.
The problem I see with this new system is “where are these businesses getting the foreign currency to re-stock their shelves?” Are the banks going to be giving local businesses forex?
Personally, I believe this will cripple the whole country.
One way ticket to 2008
I honestly don’t see how Zimbabwe is going to survive if we head back to the dreaded times of yesteryear.
The original Zimbabwean dollar was abandoned just over a decade ago when annual inflation had reached 89 700 000 000 000 000 000 000% (that’s 89.7-sextillion per cent). This hyperinflation — the second-worst in recorded human history.
It is not even a question of if we get to that stage Zimbabweans will start a mass exodus which will only harm this beautiful country even more.
Read the new Statutory Instrument 142 of 2019