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Why Zimbabweans Use Multiple Currencies

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Are you confused about using an appropriate currency while being in Zimbabwe? Well, this is one of the most common problems then people face in the country. This is because Zimbabwe has 4 official currencies. And if you will need to pay for any service, you will certainly be confused about how to pay as there is Pound, Euro, and US Dollar as the main payment options. For example, you may get confused about how to pay DSTV in Zimbabwe while using the standard currency. Although an official announcement has been made in 2019 that there will be one sole currency in Zimbabwe and that is Zimbabwe Dollar, it is yet to be followed by the country people full-fledged. 

Reasons For Multiple Currencies In Zimbabwe 

From 1980 to 2019, there were 4 different official currencies of Zimbabwe. This was because, 

  • For the replacement of the Zimbabwe Dollar with Rhodesian Dollar. 
  • The cheap nature of the Zimbabwe Dollar as compared to the currencies of other countries because of hyperinflation and political turmoil in the 1990s. 
  • Acceptance of different currencies of nearby countries for official purposes.
  • Domination and re-domination of the currencies over and again. 

The Economy Of Zimbabwe Currency

The tourism and exports are the two major Zimbabwe’s foreign currency earners. This is because of its largest possession of the Marange Diamong field, Platnum, etc. in the world. Agriculture also plays a great role as the source of foreign exchange and exports. The coffers of Zimbabwe have drained millions of dollars due to its involvement in the Demecratic and Republic wars had during 1998-2002. This drainage due to hyperinflation has led the country’s Reserve Bank to print money regularly to manage the budget deficit. The country has a clear economic growth only in 2011 which is about 6%. 

The Zimbabweans have to bear the problematic situation because of currency confusion for a long time. They faced a tedious and difficult transaction phase for these long years. 

But now, things have changed a bit. In June 2019, and an official statement was made to make Zimbabwe Dollar as the official currency. This is validated in most of the shops and other hubs, but it is still on the way of complete acceptance. This is because, a country that is dealing with its work whether personal, occupational or business related tasks in distinct currencies, will definitely need some time to combat shift its transactions in only one currency.

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