Zimbabwe Rules Out Ditching Local Currency as Dollar Use Soars
- Local currency helps make domestic manufacturers competitive
- Most transactions in the economy are conducted in US dollars
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Zimbabwe plans to keep its local currency as legal tender, even as the US dollar is now the unit of choice for most transactions in the economy.
The extensive use of US dollars doesn’t concern authorities, who instead see it as a way to access foreign currency, according to Mthuli Ncube, the southern African nation’s finance minister. The country is ineligible to access lines of credit from multilateral financial institutions because it owes more $14 billion.