Zimbabwe president promises new currency

Zimbabwean President Emmerson Mnangagwa on Friday promised to introduce a new national currency, 10 years after hyperinflation rendered the Zimbabwean dollar worthless. The country has since used US dollars, the South African rand and, in recent years, two local quasi-currencies that have fallen sharply in value.

“A country cannot develop using other countries’ currencies, without its own currency,” Mnangagwa said. “As a country we should have our own currency. We have already started that journey.”

He acknowledged that the two local quasi-currencies, called bond notes and RTGS, were weakening rapidly. “You sleep today with the rate at one US dollars to five... and the next morning it’s a one to six, one to seven, one to eight and so forth.

“And when they do that, the price of bread increases according to the exchange rate.” Zimbabwe’s economy has been in ruins since hyperinflation peaked at 500 billion per cent and wiped out savings under president Robert Mugabe.

It is undergoing another bout of price rises and shortages of fuel and daily essentials, with inflation currently more than 75 percent, putting basic goods beyond the reach of many Zimbabweans.