Zimbabwe adds Asian currencies, Chinese Yuan to official currencies

By Janet Shoko
Posted on Wednesday, 29 January 2014 15:50

The southern African country ditched its currency in 2009, after it had been rendered useless by hyperinflation which peaked at 231 million percent and began using a number of currencies including the United States dollar, the South African rand and the Botswana pula among others.

Acting governor of the Reserve Bank of Zimbabwe, Charity Dhliwayo announced the development in the capital Harare.

Zimbabwe faces a crippling liquidity crisis and allowing the new currencies to trade could be seen as a way of improving the country’s cash crisis.

China is one of Zimbabwe’s major trading partners, although questions remain on the feasibility of the introduction of the Australian dollar and the Japanese yen.

Trade between China and Zimbabwe grew by almost a third in the nine months to September 30 last year, with the latter enjoying a surplus of $279 million.

Zimbabwe’s exports to China were up 44 percent and valued at $597 million, while Chinese imports were valued at $318 million, showing a growth of 9.5 percent.

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