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Zimbabwean govt plans to introduce new currency by end of year

Most Zimbabweans were using local electronic RTGS dollars introduced in February, but the currency lost value against the US dollar, leading to massive price hikes and high inflation.

Zimbabwean President Emmerson Mnangagwa. Picture: AFP.

HARARE - Zimbabwean President Emmerson Mnangagwa said on Friday his government planned to introduce a new currency by the end of the year.

Most Zimbabweans were using local electronic RTGS dollars introduced in February, but the currency lost value against the US dollar, leading to massive price hikes and high inflation.

The prospect of a new Zimbabwe currency won't do much to restore confidence.

Many in the country still hankered after the days when Zimbabwe first adopted the US dollar and inflation was negligible.

But US dollars had largely disappeared from circulation.

Those who still had access to them got massive discounts in shops and restaurants, as well as fuel at select service stations without having to sit in long queues.

But on Friday, Mnangagwa said the journey to a new currency had begun.

In comments carried by state media, he said when the new currency was introduced it won't be possible to use foreign currency for local transactions.

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