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| Zimbabwe sidelines its currency | |
| (about 1 hour later) | |
| Zimbabweans will be allowed to conduct business in other currencies, alongside the Zimbabwe dollar, in an effort to stem the country's runaway inflation. | Zimbabweans will be allowed to conduct business in other currencies, alongside the Zimbabwe dollar, in an effort to stem the country's runaway inflation. |
| The announcement was made by acting Finance Minister Patrick Chinamasa. | The announcement was made by acting Finance Minister Patrick Chinamasa. |
| BBC southern Africa correspondent Peter Biles says the Zimbabwean dollar has become a laughing stock. A Z$100 trillion note was recently introduced. | BBC southern Africa correspondent Peter Biles says the Zimbabwean dollar has become a laughing stock. A Z$100 trillion note was recently introduced. |
| Until now only licensed businesses could accept foreign currencies, although it was common practice. | Until now only licensed businesses could accept foreign currencies, although it was common practice. |
| Mr Chinamasa made the announcement as he delivered the annual budget to parliament. | |
| "In line with the prevailing practices by the general public, government is therefore allowing the use of multiple foreign currencies for business transactions alongside the Zimbabwean dollar," he said. Our people are now using multiple currencies alongside the Zimbabwean dollar Patrick Chinamasa, acting Finance Minister | |
| The country is in the grip of world-record hyperinflation - officially set at 231 million percent - which has left the Zimbabwean dollar virtually worthless. | |
| Teachers, doctors and civil servants have gone on strike complaining that their salaries - which equal trillions of Zimbabwean dollars - are not even enough to catch the bus to work each day. | |
| Before the announcement, shops in Zimbabwe were increasingly demanding payment in US dollars - a reality acknowledged by Mr Chinamasa. | |
| "In the hyper-inflationary environment characterising the economy, our people are now using multiple currencies alongside the Zimbabwean dollar. These include the [South African] rand, US dollar, Botswana pula, euro and British pound among others." | |
| Last year, the Central Bank was forced to slash 10 zeros from the local unit in an effort to make the currency more manageable. | |
| Now, by loosening foreign currency controls, the government has effectively admitted defeat in its battle against inflation. | |
| The political crisis that resulted from last year's disputed presidential elections has driven the country's economy to the brink of collapse. | |
| The situation has been made worse by a deepening chlorea outbreak which has killed over 3,000 people according to the World Health Organization (WHO). |