Categories: Stories

Rand in 13-year low

The South African, one of the major trading currencies in Zimbabwe, fell to a new 13-year low today and was at one time trading at 12.13 to the United States dollar.

South African coins are the preferred change in Zimbabwe where the public has generally rejected the bond coins introduced by the central bank to ease change problems.

Finance Minister Patrick Chinamasa told Parliament last week that companies, rather than individuals, were rejecting the bond coins because they were making money out of it.

Readers of The Insider, however, said Chinamasa was wrong. It was the people that had rejected the bond coins.

Zimbabwe has been facing problems of change since the introduction of the multiple currencies in 2009.

The United States dollar is the major trading currency.

Although the bond coins are backed by Afrexim bank and are linked to the United States dollar, they have been rejected by the public as it views them as an attempt to bring back the Zimbabwe dollar which was phased out  six years ago resulting in people losing fortunes.

The central bank has said it will demonitise the Zimbabwe dollar and give all those who had money in the bank US$5.

(364 VIEWS)

This post was last modified on %s = human-readable time difference 5:31 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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