Zimbabwe to re-introduce local currency within a year: minister

Zimbabwe will re-introduce a local currency “in less than 12 months”, after using the US dollar and regional currencies since a hyperinflation crisis a decade ago, the finance minister said in an interview published yesterday. President Emmerson Mnangagwa, who took over from long-time ruler Robert Mugabe and won a disputed election in July, has pledged to revive the economy and mend fences with former allies in the west after years of international isolation.

“On the issue of raising enough foreign currency to introduce the new currency, we are on our way already, give us months not years,” state-owned Herald newspaper quoted Finance Minister Mtuli Ncube as saying. Asked for a timeline for the currency reform, the minister said it would be in “less than 12 months”. The southern African nation’s economy has been in a downturn for more than a decade with shortages of cash, high unemployment and the government struggling to pay its workers. The country was thrown into a panic after Ncube introduced a two per cent tax on all electronic transactions as part of new measures to increase revenue.