Dilemma over change in currency in Zimbabwe

Schools in Zimbabwe have reopened for the winter term but parents are in a dilemma on how to pay fees over the few circulation of the new currency dubbed Zig.

The move is supposed to help tackle inflation and hyperinflation – a disease that has plagued Zimbabwe for the last two decades. This led the government to abolish the Zimbabwe dollar in 2009 and ever since, most people have been using the US dollar.

Just before the Zig was launched, I could buy a packet of peanuts from Ms Dhliwayo for $0.50 (£0.40) or Z$2,500 bond notes.

The state introduced the new currency last month – and Zimbabwe is very much a cash-based society at present.

The Zig is set in US dollars but can be converted and paid in local currency at government schools.

Reserve Bank Governor John Mushayavhanu declared that the old currency bond notes could still be used but they drastically depreciated in value. 

It is not clear whether these buses and taxis will be running as petrol stations are only accepting US dollars for fuel payments – and local operators are struggling to find the hard cash.

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