Zimbabwe declares interim RTGS dollar sole legal currency

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Macro of Zimbabwe twenty billion dollars banknote. Now void currency. Inflation concept

Zimbabwe has declared its interim currency, the Real Time Gross Settlement dollar, RTGS, her sole legal tender with effect from Monday, according to a government notice, published on Monday.

“The British pound, United States dollar, South African rand, Botswana pula and any other foreign currency whatsoever shall no longer be legal tender alongside the Zimbabwe dollar in any transactions in Zimbabwe,” the notice said.

The RTGS dollar was introduced by the government on February 22, as the first step towards a new currency by year-end.

However, by last week it had plunged 60 per cent against the U.S. dollar and some Zimbabweans complain that many goods and services were still priced in foreign currencies, mainly the dollar and the rand.

Zimbabwe adopted the U.S. dollar as its official currency in 2009, when most of the citizens had already ditched the hyperinflation-wrecked Zimbabwean dollar.

Analysts fear that the same situation may repeat itself with the interim currency.

In May, year-on-year inflation soared to 75.86 per cent and fuel prices, have been climbing steadily more than 150 per cent, since the beginning of the year.

Rahila L.