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Zimbabwean dollar (2019–2024)
The Zimbabwean dollar (sign: Z$; code: ZWL), also known as the Zimdollar or Real Time Gross Settlement (RTGS) dollar, was the currency of Zimbabwe from February 2019 to April 2024. It was the only legally permitted currency for trade in Zimbabwe from June 2019 to March 2020, after which foreign currencies were legalised again.
Due to the sharp depreciation of the Zimdollar, beginning almost immediately after its introduction, where possible, most transactions were being done in hard currencies, such as the U.S. dollar, despite their illegality until March 2020. On 5 April 2024, it was announced that the Zimdollar would be replaced by the new Zimbabwe Gold (ZiG), a gold-backed currency, starting on 8 April. On 31 August 2024, the Zimbabwean dollar (ZWL) was officially retired.
On 29 January 2009, the Zimbabwean government legalised the use of foreign currencies, such as the United States dollar and the South African rand. In response, Zimbabweans quickly abandoned the old Zimbabwean dollar, which was collapsing from what was at the time the second-highest ever rate of hyperinflation in the world (after the Hungarian pengő in 1946). On 12 April 2009, the power-sharing government of then-Prime Minister Morgan Tsvangirai suspended the old dollar. Some time later, the Reserve Bank of Zimbabwe demonetised the last banknotes of the old dollar, on 30 September 2015.
The multi-currency system eventually resulted in a liquidity crisis, because Zimbabwe had to import more than what they could export, resulting in a net exodus of US dollars. Eventually, the Reserve Bank introduced a series of bond coins on 18 December 2014, and bond notes on 28 November 2016, after securing a total of US$250 million in loans from the African Export-Import Bank.
Although bond money was officially interchangeable at par with the US dollar, the general public quickly resisted them as an attempt to reintroduce the Zimbabwean dollar, which had gained a bad reputation due to hyperinflation. That, along with the continued shortage of US dollars in Zimbabwe, resulted in a thriving parallel exchange rate that ranged between $3.00 and $3.80 in bond money to the US dollar, in February 2019.
The parallel rate and the continued shortage of US dollars created a situation where the Reserve Bank could no longer maintain the peg with the US dollar. The Reserve Bank also wanted to end the system of different exchange rates, which resulted in customers paying more or less depending on the payment method. On 20 February 2019, Reserve Bank governor John Mangudya announced the introduction of a new Zimbabwean dollar, initially called the Real Time Gross Settlement dollar (RTGS dollar). The RTGS dollar, which started trading on 25 February, consisted of real-time gross settlement balances (hence the name), and existing bond notes and bond coins (both of which were devalued by 60% to Z$2.50 per US dollar).
On 24 June 2019, the Zimbabwean government renamed the RTGS dollar as the Zimbabwean dollar, and banned the use of foreign currencies in an attempt to end the multi-currency system. The BBC reported widespread opposition to the ban, partly due to continued public distrust, partly due to high inflation, and partly due to traders still having to use hard currencies to import goods from abroad. The onset of the coronavirus pandemic soon forced the Reserve Bank to reinstate the multi-currency system, on 29 March 2020.
On 29 October 2019, the Reserve Bank claimed that a new currency would replace the fifth dollar. This claim turned out to be a new $2 bond coin, and revised $2 and $5 banknotes without the "bond note" inscription: both entered circulation on 11 November 2019. The Reserve Bank continued to introduce higher value banknotes, with the $100 note entering circulation on 5 April 2022.
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Zimbabwean dollar (2019–2024)
The Zimbabwean dollar (sign: Z$; code: ZWL), also known as the Zimdollar or Real Time Gross Settlement (RTGS) dollar, was the currency of Zimbabwe from February 2019 to April 2024. It was the only legally permitted currency for trade in Zimbabwe from June 2019 to March 2020, after which foreign currencies were legalised again.
Due to the sharp depreciation of the Zimdollar, beginning almost immediately after its introduction, where possible, most transactions were being done in hard currencies, such as the U.S. dollar, despite their illegality until March 2020. On 5 April 2024, it was announced that the Zimdollar would be replaced by the new Zimbabwe Gold (ZiG), a gold-backed currency, starting on 8 April. On 31 August 2024, the Zimbabwean dollar (ZWL) was officially retired.
On 29 January 2009, the Zimbabwean government legalised the use of foreign currencies, such as the United States dollar and the South African rand. In response, Zimbabweans quickly abandoned the old Zimbabwean dollar, which was collapsing from what was at the time the second-highest ever rate of hyperinflation in the world (after the Hungarian pengő in 1946). On 12 April 2009, the power-sharing government of then-Prime Minister Morgan Tsvangirai suspended the old dollar. Some time later, the Reserve Bank of Zimbabwe demonetised the last banknotes of the old dollar, on 30 September 2015.
The multi-currency system eventually resulted in a liquidity crisis, because Zimbabwe had to import more than what they could export, resulting in a net exodus of US dollars. Eventually, the Reserve Bank introduced a series of bond coins on 18 December 2014, and bond notes on 28 November 2016, after securing a total of US$250 million in loans from the African Export-Import Bank.
Although bond money was officially interchangeable at par with the US dollar, the general public quickly resisted them as an attempt to reintroduce the Zimbabwean dollar, which had gained a bad reputation due to hyperinflation. That, along with the continued shortage of US dollars in Zimbabwe, resulted in a thriving parallel exchange rate that ranged between $3.00 and $3.80 in bond money to the US dollar, in February 2019.
The parallel rate and the continued shortage of US dollars created a situation where the Reserve Bank could no longer maintain the peg with the US dollar. The Reserve Bank also wanted to end the system of different exchange rates, which resulted in customers paying more or less depending on the payment method. On 20 February 2019, Reserve Bank governor John Mangudya announced the introduction of a new Zimbabwean dollar, initially called the Real Time Gross Settlement dollar (RTGS dollar). The RTGS dollar, which started trading on 25 February, consisted of real-time gross settlement balances (hence the name), and existing bond notes and bond coins (both of which were devalued by 60% to Z$2.50 per US dollar).
On 24 June 2019, the Zimbabwean government renamed the RTGS dollar as the Zimbabwean dollar, and banned the use of foreign currencies in an attempt to end the multi-currency system. The BBC reported widespread opposition to the ban, partly due to continued public distrust, partly due to high inflation, and partly due to traders still having to use hard currencies to import goods from abroad. The onset of the coronavirus pandemic soon forced the Reserve Bank to reinstate the multi-currency system, on 29 March 2020.
On 29 October 2019, the Reserve Bank claimed that a new currency would replace the fifth dollar. This claim turned out to be a new $2 bond coin, and revised $2 and $5 banknotes without the "bond note" inscription: both entered circulation on 11 November 2019. The Reserve Bank continued to introduce higher value banknotes, with the $100 note entering circulation on 5 April 2022.