This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/world-africa-33105400
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Zimbabwe dollars phased out | Zimbabwe dollars phased out |
| (about 1 hour later) | |
| Zimbabwe is phasing out its local currency, the central bank says, formalising a multi-currency system introduced during hyper-inflation. | Zimbabwe is phasing out its local currency, the central bank says, formalising a multi-currency system introduced during hyper-inflation. |
| Foreign currencies like the US dollar and South African rand have been used for most transactions since 2009. | Foreign currencies like the US dollar and South African rand have been used for most transactions since 2009. |
| Local dollars are not used except high-denomination notes sold as souvenirs. | Local dollars are not used except high-denomination notes sold as souvenirs. |
| But from Monday, Zimbabweans can exchange bank accounts of up to 175 quadrillion (175,000,000,000,000,000) Zimbabwean dollars for five US dollars. | But from Monday, Zimbabweans can exchange bank accounts of up to 175 quadrillion (175,000,000,000,000,000) Zimbabwean dollars for five US dollars. |
| Higher balances will be exchanged at a rate of Z$35 quadrillion to US$1. | Higher balances will be exchanged at a rate of Z$35 quadrillion to US$1. |
| Africa news updates | |
| The move has been "pending and long outstanding," central bank Governor John Mangudya said, quoted by Bloomberg. | The move has been "pending and long outstanding," central bank Governor John Mangudya said, quoted by Bloomberg. |
| "We cannot have two legal currency systems. We need therefore to safeguard the integrity of the multiple-currency system or dollarization in Zimbabwe." | "We cannot have two legal currency systems. We need therefore to safeguard the integrity of the multiple-currency system or dollarization in Zimbabwe." |
| Zimbabweans have until the end of September to exchange their local dollars. | Zimbabweans have until the end of September to exchange their local dollars. |
| Correspondents say this is likely to only affect those with savings accounts. | |
| Multi-currency country: | |
| Zimbabwe's multi-currency confusion | |
| Hyper-inflation saw prices in shops change several times a day, severe shortages of basic goods and Zimbabweans taking their money to market in wheelbarrows. | Hyper-inflation saw prices in shops change several times a day, severe shortages of basic goods and Zimbabweans taking their money to market in wheelbarrows. |
| Ahead of the abandonment of the Zimbabwean dollar in January 2009, officials gave up on reporting official inflation statistics. | Ahead of the abandonment of the Zimbabwean dollar in January 2009, officials gave up on reporting official inflation statistics. |
| Towards the end of 2008, annual inflation had reached 231m%, pensions, wages and investments were worthless, most schools and hospitals were closed and at least eight in 10 people were out of work. | Towards the end of 2008, annual inflation had reached 231m%, pensions, wages and investments were worthless, most schools and hospitals were closed and at least eight in 10 people were out of work. |
| The highest denomination was a $100 trillion Zimbabwean dollar note. | The highest denomination was a $100 trillion Zimbabwean dollar note. |
| A four-year unity government, that ended in 2013 with President Robert Mugabe's re-election, helped stabilise the economy but it still faces huge challenges. | A four-year unity government, that ended in 2013 with President Robert Mugabe's re-election, helped stabilise the economy but it still faces huge challenges. |
| One of the problems has been the shortage of coins that kept prices high as retailers often rounded them up and shoppers were given change in sweets or pens. | |
| Over the last six months, the central bank has introduced about $10m (£6.4m) worth of "bond coins" into circulation, but they have not been popular with consumers who fear that it is the first step in the re-introduction of the Zimbabwe dollar. | |
| During campaigning ahead of the last election, some ruling Zanu-PF party supporters had suggested this could happen, but the central bank governor has since ruled that out. | |
| Zimbabwe's economy has struggled since a government programme seized most white-owned farms in 2000, causing exports to tumble. | |
| Mr Mugabe has always blamed the economic problems on a Western plot to oust him. |