Zimbabwe’s local currency officially dissolved
June 12, Harare: Zimbabweans will start exchanging ‘quadrillions’ of local dollars for a few US dollars from Monday, as President Robert Mugabe’s government discards the virtually worthless national currency.
According to the central bank has said that virtually worthless Zimbabwean dollars will have to be exchanged for US dollars from Monday.
Reports from local medias suggest that account holders with balances of up to 175 quadrillion Zimbabwean dollars will be paid 5 US dollars (4.45 euros). Those with balances above 175 quadrillion dollars will be paid at an exchange rate of $1 to 35 quadrillion Zimbabwean dollars. Customers have until September to exchange their notes.
At the height of Zimbabwe’s economic crisis in 2008, Zimbabweans had to carry plastic bags bulging with bank notes to buy basic goods like bread and milk as prices were rising at least twice a day. From Monday, customers who held Zimbabwean dollar accounts before March 2009 can approach their banks to convert their Zimbabwean dollar balance into dollars, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya said in a statement. “Zimbabwe adopted the multiple currency system, or dollarization in 2009 and it is therefore necessary to demonetize the Zimbabwe dollar unit,” said Reserve Bank of Zimbabwe governor John Mangudya. “We are decommissioning this currency.”