After banning the use of all foreign currencies in 2019, the Reserve Bank of Zimbabwe has reinstated the use of the US dollar as a currency in order to mitigate the devastating impact of Covid-19 on the economy.
The Reserve Bank says this is an effort to simplify transactions for the public and to promote social distancing as banks will be able to provide digital financial services to their customers.
The bank has also adopted a fixed exchange rate system at the current interbank level of ZW$25 to the US$, with immediate effect. This measure will be reviewed when markets stabilise after the effects of the virus, according to a statement issued by the Reserve Bank of Zimbabwe.
About The Author: David DiGregorio
More posts by David DiGregorio