ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Paisa Wasool: Mutual Funds-SIP Returns Calculator | Start from Rs 5k, get Rs 1.75 cr - SOLID MONEY FORMULA
  • WhatsApp New Feature: Soon! you can undo, recover WhatsApp deleted messages
  • LIC customers ALERT! Insurer launches campaign to revive lapsed policies - All you need to know
  • Wealth Guide: Income Tax - SMART TIPS! 5 tax-saving techniques for FY23 - Here is what expert suggests
  • Loss-making US company's share price zooms over 400% in one month - factors behind rally DECODED
Read in App
Business News » World News

Zimbabwe plans new currency as dollar shortage bites: Finance Minister

The southern African nation abandoned its own hyperinflation-wrecked currency in 2009 at the height of an economic recession, adopting the greenback and other currencies including sterling and the South African  rand .

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Zimbabwe plans new currency as dollar shortage bites: Finance Minister
Zimbabwe currently has less than two weeks import cover, according to central bank data, Image source: Reuters

Zimbabwe will introduce a new currency in the next 12 months, the country`s Finance Minister said, as a shortage of U.S. dollars plunges the financial system into disarray, forcing businesses to close and threatening unrest. 

The southern African nation abandoned its own hyperinflation-wrecked currency in 2009 at the height of an economic recession, adopting the greenback and other currencies including sterling and the South African rand.

But without enough hard currency to back up the $10 billion of electronic funds trapped in local bank accounts, businesses and civil servants are demanding payment in cash which can be deposited and used to make payments both inside and outside the country. 

Mthuli Ncube told a townhall meeting late on Friday that a new local currency would be introduced in less than twelve months.

"On the issue of raising enough foreign currency to introduce the new currency, we are on our way already, give us months, not years," he said.

Zimbabwe currently has less than two weeks import cover, according to central bank data, and the government has previously said it would only consider launching a new currency if it had at least six months of reserves.

Watch Zee Business Tweet Video here:

#Zeegnition में इस मंगलवार 4:26 PM पर देखिए #NissanKicks की टेस्ट ड्राइव और जानिए कैसी है #Kawasaki की एडवेंचर बाइक #VersysX300, सिर्फ ज़ी बिज़नेस पर।

अपने सवाल हमें इस हैशटैग पर भेजें #SwatiSeSawaal@Nissan_India #Nissans #KawasakIindia @india_kawasaki @SwatiKJain pic.twitter.com/tEH8NCwqtv

— Zee Business (@ZeeBusiness) January 12, 2019

Locals are haunted by memories of the Zimbabwean dollar, which became worthless as hyperinflation spiralled to reach 500 billion percent in 2008, the highest rate in the world for a country not at war, wiping out pensions and savings.

A surrogate bond note currency introduced in 2016 to stem dollar shortages has also collapsed in value.

President Emmerson Mnangagwa is under pressure to revive the economy but, in something of a vicious circle, the dollar shortages are undermining efforts to win back foreign investors sidelined under his predecessor Robert Mugabe.

With less than $400 million in actual cash in Zimbabwe according to central bank figures, there are fuel shortages and companies are struggling to import raw materials and equipment, forcing them to buy greenback notes on the black market at a premium of up to 370 percent. 

The Confederation of Zimbabwe Industries has warned some of its members could stop operating at the end of the month due to the dollar crunch.

Zimbabwe`s iconic manufacturer of cooking oil and soap, Olivine Industries said on Saturday it had suspended production and put workers on indefinite leave because it owed foreign suppliers $11 million. 

A local associate of global brewing giant Anheuser-Busch Inbev said this week it would invest more than $120 million of dividends and fees trapped in Zimbabwe into the central bank`s savings bonds.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Zimbabwecurrency
Written By: Reuters
Updated: Sat, Jan 12, 2019
05:27 pm
HARARE, Reuters
RELATED NEWS
India vs Zimbabwe tour 2022 announced: Here is full schedule, squad and matches India vs Zimbabwe tour 2022 announced: Here is full schedule, squad and matches
Unprecedented move! Zimbabwe debuts gold coins as legal tender to stem inflation Unprecedented move! Zimbabwe debuts gold coins as legal tender to stem inflation
Zimbabwe rolls out 'surrogate' dollars amid unease  Zimbabwe rolls out 'surrogate' dollars amid unease

LATEST NEWS

IBPS clerk admit card 2022 download link ibps.in - Step-by-step guide

Microfinance sector's loan portfolio grows 24% to Rs 2.75 lakh crore in April-June: Report

Sensex reclaims 60,000, Nifty sits above 17,900 first time after 4-month; NTPC, Bajaj Finance, Bajaj Finserv top gainers

Mask mandatory! DGCA asks airlines to strictly enforce COVID-19 protocol amid rise in cases

Apple iPhone 14 Pro Max release date, price, specifications, color options - What to expect during September launch

Vivo V25 Pro price in India starts at Rs 35,999 - Offers, specifications and availability

Cabinet approves interest subvention of 1.5% on short term agriculture loan up to Rs 3 lakh for FY23 to FY25

Vikram Solar gets Sebi nod to mop-up funds via IPO

Uber charges Noida resident Rs 3,000 from Delhi airport to home - here's what happens next

GST on Rent of residential property, commercial property: All scenarios where this indirect tax is applicable

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV