Greenback Still Rules in Zimbabwe Despite Local Currency Rally
- Central bank head warns against ‘big bang’ change to system
- Oldest brokerage fears premature return to single currency use
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Zimbabwe’s dollar has firmed 53% against its US counterpart over the past month, making it the world’s best performer, but the central bank is resigned to the greenback remaining key to transacting in the southern Africa nation for the foreseeable future.
Citizens lost confidence in the local currency due to their prior experience of hyperinflation that ensued after its value plunged more than a decade ago, and the authorities now have to deal with a “perception and mindset” that dealing in it is risky and can lead to losses, according to Governor John Mangudya.