Zimbabwe has announced that it plans to end the use of foreign currency in the country by the end of 2022.
This comes barely a year after Zimbabwe had again allowed the use of foreign currencies to be used in local transactions. The use of foreign currency in local transactions had first become widespread following the collapse of the Zimbabwe dollar in 2009, following a period of hyperinflation.
In February 2019 Zimbabwe introduced the real-time gross settlement (RTGS) dollar which would replace foreign currencies. It became the only legal currency in the country in June last year but the use of foreign currencies was once again allowed in November 2019.
Companies and organisations have two years to prepare for the ban on the use of foreign currency. By 2023 goods and services will be ‘chargeable in local currency and payable in local currency using free funds’ according to Fin24.