Retailers and service providers in Zimbabwe are offering discounts to customers who are paying in physical cash as a result of shortage of dollar notes in the country. Zimbabweans have been transacting mainly in dollars for the last 8 years since hyper inflation and economic mismanagement rendered its its own currency, the Zimbabwean dollars (ZWD) useless. Other currencies used in the country include Euro, Botswana pula, Pound sterling, Renminbi, Indian rupee, South African rand.

A shortage of US dollar notes has become so serious that businesses are limiting the amounts customers can pay with credit cards or rejecting them altogether.

The cash crunch has become so tough that banks are limiting customer withdrawals to $150 a week, a limit approved by the central bank. Zimbabwe’s biggest lender CBZ Holdings Ltd also announced this month that it will suspend Visa cards for local transactions.

Zimbabwe’s economic challenges are huge as the controversial land reform continues to shape its economic recovery, poverty and its relationship with international stakeholders. The country’s socio- economic challenges include prolonged economic stagnation, high unemployment, inflation,food insecurity, prevalence of HIV/AIDS,power outages and lack of clean drinking water.

The government in attempt to tackle the bank note shortage began distributing bond notes in November 2016 with about US$73 million of the dollar-linked securities issued. Though the introduction of these notes were met with stiff resistance, most large retailers have accepted them as legal tender. However many small retailers and service providers have refused to accept them and in the event that they do price them at about 70 percent of their dollar value.