The introduction of four new foreign currencies as
legal tender in Zimbabwe has been described as a ‘non-starter’ that could cause
chaos in the commercial sector.
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The Reserve Bank of Zimbabwe (RBZ) announced
Wednesday that the Chinese yuan, Japanese yen, Indian rupee and Australian
dollar will be accepted, with Zimbabweans and exporters able to open accounts
in the various currencies.
Zimbabwe’s multi-currency system, adopted in 2009
to override the worthless local dollar, means the US dollar, South African
rand, Botswana pula and British pound are already considered legal tender. The
majority of Zimbabweans primarily use the US dollar and South African Rand,
while import prices are mostly set at the US value.
But an increase in trade, mainly with the Eastern
market, means more currencies will technically be considered legal tender this
year.
“Trade and investment ties between Zimbabwe, China,
India, Japan and Australia have grown appreciably,” said RBZ acting governor
Charity Dhliwayo.
Dhliwayo added: “It is against this background of
growth in trade and investment ties that in the 2014 national budget, the
minister of finance and economic development underscored the importance of
including other currencies in the basket of already circulating currencies.”
Concern has been raised about the potential chaos
this could cause for many Zimbabweans, with cash shortages and fluctuating
exchange rates adding to an already difficult economic climate.
Most recently, SW Radio Africa reported how
Zimbabweans have started abandoning the use of the neighbouring rand, because
of its falling value.
The potential for more chaos is now high, with
multiple currencies and exchange rates posing fresh challenges for the average
trader.
Source: http://www.rnw.nl/
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