Zimbabwe will introduce a new currency in the next 12 months, the finance minister said, as a shortage of U.S. dollars has plunged the financial system into disarray and forced businesses to close.

In the past two months, the southern African nation has suffered acute shortages of imported goods, including fuel whose price was increased by 150 percent on Saturday.

Zimbabwe abandoned its own currency in 2009 after it was wrecked by hyperinflation and adopted the greenback and other currencies, such as sterling and the South African rand.

But there is not enough hard currency in the country to back up the $10 billion of electronic funds trapped in local bank accounts, prompting demands from businesses and civil servants for cash which can be deposited and used to make payments.

Finance Minister Mthuli Ncube told a townhall meeting on Friday a new local currency would be introduced in less than 12 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’s foreign reserves now provide less than two weeks cover for imports, central bank data show. The government has previously said it would only consider launching a new currency if it had at least six months of reserves.

Locals are haunted by memories of the Zimbabwean dollar, which became worthless as inflation spiraled 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 dollar shortages are undermining efforts to win back foreign investors sidelined under his predecessor Robert Mugabe.

Mnangagwa told reporters on Saturday that the price of petrol had increased to $3.31 per liter from $1.32 from midnight but there would be no increase for foreign embassies and tourists paying in cash U.S. dollars.

Locals can pay via local debit cards, mobile phone payments and a surrogate bond note currency.

With less than $400 million in actual cash in Zimbabwe according to central bank figures, fuel shortages have worsened 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. (Reuters)

https://mobile.reuters.com/article/amp/af/idAFL8N1ZC0NY

We still thank God in Nigeria hoooo

We still had memories of the Zimbabwean dollar, which became worthless as hyper-inflation 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...

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is Zimbabwe still a country? I thought South Africa bought it last year

Better.The Zimbabwean dollar is one of the most useless currencies in the world

Buhari = Mugabe
4 + 0 = Daura

If an average Nigerian goes to Zimbabwe, na big boy he go be

Erigga talk say Nigeria bad nor mean say i go run go Mali...Zimbabwe is really suffering o,just take a look at the fuel price their, almost #1200 per liter.

China should bid for Zimbabwe in this January transfer window

Nawao, this one weak me oh

this country is cursed. I remember way back, when one needs a bag full of money to eat at a restaurant. let them go to China for help

We shd change naira to pounds too

jerecrown:
We shd change naira to pounds too

Lol

Oga go and collect IMF package and stop trying to dodge your suffering

Hmm. Weird news capital of Africa - Zimbabwe.

Africa is cursed.

Zimbabwe's problems started when they did that land resettlement programme 19 years ago.

As a result, they destroyed their means of getting foreign reserves, destroyed a major sector of their economy, and their currency paid the price.

Moral: sometimes justice has to wait.

Mugabe effect

Zimbabweans are useless people with empty pride.

With all the education they always brag about, they cannot put the country together.

They are not the first country to be sanctioned. Cuba and Sudan, was once sanctioned, Iran, NKorea are still sanctioned.

All they know is to run to other countries to do rubbish work with their education.

Initially they used to say Mugabe is the problem, now Mugabe is gone they can't fix their problems.

Useless people with empty pride.

So you work a long period of time or a lifetime, just for you to reach that end road and be told all that money you accumulated for pension/savings is worthless. Tragic stuff. May we live to see Africa have her day.

post=74711668:
We still had memories of the Zimbabwean dollar, which became worthless as hyper-inflation 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...

That's the result when a president was busy spending the dollar reserves anyhow. Mugabe and Grace's effect

We had the same in Nigeria,but thank God for the interventions.........

Zimbabwe should be colonized by south Africa or some other sensible African country

There was a country!

Okay

theoldpretender:
Zimbabwe's problems started when they did that land resettlement programme 19 years ago.

As a result, they destroyed their means of getting foreign reserves, destroyed a major sector of their economy, and their currency paid the price.

Moral: sometimes justice has to wait.

Nawa ooo
More hint Pls

hope isn't going to be yuan

AGNESikpuNNU:

Buhari = Mugabe
4 + 0 = Daura

first it was failbuhari, then #bringbackjonathan, now 4+0. You guys are always fond of making a rip off of another person's slogan. Aren't u guys creative enough to make urs?

id4sho:

Nawa ooo
More hint Pls

I think they took lands from white Zimbabweans and gave them to blacks.thw white Zimbabweans were big farmers.some of them came to Nigeria to continue their agriculture