Zimbabwe to use Chinese currency

Zimbabwe has added the Chinese yuan, Australian dollar and two other currencies from Asia to the multi-currency basket as the country turns to the East to ease the liquidity constraints biting the economy.

By Bernard Mpofu
Acting Business Editor

Presenting the Monetary Policy Statement in Harare yesterday, acting Reserve Bank of Zimbabwe governor Charity Dhliwayo said Treasury had no immediate plans to re-introduce the local currency.

Before this latest policy intervention, the multi-currency basket was dominated by the United States dollar, South African rand and Botswana pula.

The move could signal a gear up in government’s look-east policy which was adopted more than a decade ago after Harare fell out of favour with the European Union and the United States due to alleged gross human rights violations and failure to uphold the rule of law.

“Trade and investment ties between Zimbabwe, China, India, Japan and Australia have grown appreciably. It is against this back ground of growth in trade and investment ties that in the 2014 National Budget, the Minister of Finance and Economic Development underscored the importance of including other currencies in the basket of already circulating currencies,” Dhliwayo said.

“In this regard, we wish to advise exporters and the general transacting public that in addition to the opening of accounts denominated in Botswana Pula, British Pound Sterling, Euro, South African Rand, United States Dollar, individuals and corporates can also open accounts denominated in the Australian Dollar (AUD), Chinese Yuan (CYN), Indian Rupee (INR) and Japanese Yen (JPY).”

The use of the multi-currency regime was credited with stemming hyperinflation which had made the local currency worthless.

Turning to the capitalisation status of local financial institutions, the central bank acting governor also announced a reprieve for banking institutions after postponing the deadline for the ongoing capitalisation exercise to 2020. Banks were in June expected to raise $100 million in core capital amid concerns that predominantly locally-owned lenders were struggling to meet the new threshold.

“Capital requirements remain at current levels of $25 million for Commercial Banks, $25 million for Merchant Banks, $20 million of Building Societies, $15 million for Discount and Finance Houses and $5 million for Microfinance Banks. Nevertheless, compliance with Cabinet-approved levels has now been moved to 31 December 2020,” Dhliwayo said.

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41 Comments

  1. Nemari yacho here vakomana? tazoona moto nemaZhingaz this time

  2. This is a good move,but for but though trade is increasing slowly wt th abv nmed countries we still need to revise our policies! Thts js wat Zimbabwe needs

  3. kkkkk. cant imagine the parallel market street lingua. goes like, Ndipewo ka maRupee, ko maYen unawo here? nhasi Yuan riri pamarii? Sha Une Dhora here? UrikudaDhora ripi racho? nhasi ndine ma Rands akachipa kudarika pula.

    Oh God! what a mess we are in.

  4. This is colonisation. It doesnt come with any better promises, it comes as business necessary deals. The line that defines colonisation is drawn along overreliance of one state on another, soon the providing economy or state will be determining our policies and from there, sattlers will arive hence gone our purpoted “sovereignity”.

    What a shame.

    1. A clue less government, oh lord have messy! Why not put in place investment friendly policies and stop your crazy crusade. Because this will further increase the dent usually suffered by the frail rural folks in so called cross rate change. I mourn the death of a once thriving nation.

    2. Zimbabwe will never be a colony again! Hahahahaha

  5. Of all the currencies in the world indan rupees here veduwe . U can do better guys #zimgov#RBZ

    1. dxb can Zimbabwe do better? we are using foreign countries money! US “imperialist” dollars and former “colonial masters” British pounds. At least India has a functioning economy and many industries, they make cars and and send rockets into space and use their own currency, what significant industries do we have? mufushwa factory?

  6. Silvanos. usadaro taurira pasi,unokudavadza vanhu nekuseka vakadambuka mbabvu.

  7. A country gone to the dogs. Hahahaha chasara kudzidziswa Kunfu. Rega Gono asiye zvedi

  8. Gu-shung-ho to announce soon official language to change from English to Chinese.

    1. Such as at the airport

  9. So the Gvt can start printing monet now. Obviously the Chinese will have no problem with the yuan being printed at Fidelity and very soon all civil servants will be paid in Chinese yuan. Yadzoka Zimdollar nerweseri.

    1. You overstate the importance of Zimbabwe on the world stage. How in the world would a country with an economy the size of China allow a credit-nonworthy country like Zimbabwe to print and abuse its currency. Fidelity’s capacity to print has impressed the world once. I doubt very much other countries would allow Fidelity to flood their markets with made-in-zim notes. Sounds to me like just another drunk ignorant nut-job talking.

  10. zvichanetsa izvi

    KWAMAKANDIWA THEY WILL NOT ACCEPT INDIAN RUPEES OR CHINESE YUAN. VANODA US DOLLAR CHETE, OTHERWISE ZVIKWAMBO ZVAVO HAZVIZOITE MINANA.

  11. this colony will never be a country again

  12. zvanaka ma china toapa yuan rawo

  13. Rega zvakadaro

  14. Are those countries like China investing in our country or they r jus looting our resources…handina kumboona company yemaChina muno

  15. kikikikkk. its actually funny. kuseka nhamo serugare.

  16. Madhara aya apererwa, they don`t think!

  17. And where would Zimbos GET Chinese yuan? Have the geniuses at the Finance Ministry and Reserve Bank not heard that the renminbi is not a fully convertible currency? You can’t just walk into the bank and buy them! STUPID!

  18. I prefer the colonisers who helped with school fees and funerals and hospitals. Guess who they were?

  19. AYA NDO MA 1….KWASARA OFFICIAL LANGUAGE….LET’S CHANGE IT TO CHINESE

  20. This is a good move. The US government has been printing us dollars to fiancé their domestic needs. And this has made the reserve currency as the US dollars is often referred to very weak. America owes trillions. It is forecasted in the next coming years the Chinese currency will over take the dollar and finally become the reserve currency. So kudos to the RBZ governor – this is stroke of master piece – in one way if you want to invest in currency you get to do so local. The Australian dollar is very strong data coming from there indicates Australians do not owe anybody. That makes living in Australia very attractive – check migration of people from UK to down under. I an no economist but I greatly follow it.
    Well done.

    1. Do you know how many Australians and New Zealanders live in UK? Thousands and thousands. I still prefer pounds and US dollars to yuan!

  21. zimbabwe for zimbabeans

    we can use all the currencies on Earth but for as long as we do not produce and remain a net importer ,our fortunes will get worse each day . i thought we had learned pple in gvt, alas this is very funny.

  22. God help us

  23. hahahaha lol.check this one out. http://bit.ly/1ljUjdu

  24. I am a slum-dog millionaire, I have got a million rupees and I am going to invest big in Zimbabwe. Just joking guys.

  25. Osiphateleni have been given a lifeline. Thanx guys!

  26. By the way, whose face is on the Chinese bank notes. Could it be Mao Zedung I wonder?

  27. shame…..

  28. Ranganai mangezvo

    why yu ddnt prêfer the other currency except yuan ,maZhong zhong atiuraira nyika .Otherwise zvemari izvi dai masiyana nazvo kana musingakwanisi kuprinter yedu.Dai maigona kuuraya chicrossrate nekuti ndicho chichakanganisa kodzero dzevashandisi ve this curncy.Aa inga zvatiomera,dai mwari vapindira

  29. Meaning , they can’t improve our economy alone, sisy, Nikuvu should help rigging this economy again as previous election.

  30. its funny kuita look east iyo East yacho yakaita look West.Stupid politicians zvinorwadza mhani

  31. So much for sovhereniti blah blah blah. Kushandisa mari yevamwe? Misoro iri pamari belongs to other countries’ heroes. We are stuck with our zeroes. Magamba edu ikamba. Ma chiefs edu ma thieves. From winners to wieners. Chinyika ichi chava chigaba. Madzimba emabwe aya owondomoka shuwa…

  32. ndiwo mashura chaiwo, thats rubbish tangomirira imi mwari kuti muratidze masimba enyu, kana vana Mapfumo votaura zvavo kuti nyika iya yamaichemera yave mamvemve moti vakaipa, bt why why why. Mwari hamusi kuonawo here kuti vana venyu tanetseka

  33. Ko kungoti tazvitadza zvekutonga nyika. Ndochii ichochi? Ndokunonzi kufunga kune hutachivana uku ah!!

  34. Zimbabwe is not going to be a colony again,we hold free and fair elections and we use any country’s currency.What next?.Move our State House to Bejing or colonize all these countries,MIGHTY ZIMBABWE

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