Zimbabweans sold US$8m to banks: Mangudya

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Reserve Bank of Zimbabwe Governor, John Mangudya

PHILLIMON MHLANGA

Zimbabweans sold about US$8 million to banks in exchange for the local currency after government outlawed the use of foreign currencies for domestic transactions, central bank chief John Mangudya said Monday.

Speaking at a breakfast meeting organised by the Daily News in collaboration with Business Times and ZiFM, Mangudya said individuals and non governmental organisations changed their foreign currency through banks.

“Last Monday about US$800 000 was changed to local currency through the banks. About US$1 million was changed on Tuesday while US$1,7 million went through the banks on Wednesday. On Thursday and Friday, we saw US$2,9 million and US$1,5 million being changed into local currency respectively,” Mangudya said.

The development comes after government last month outlawed the use of multi-currencies, restricting domestic transactions to Zimbabwe dollar, which has remained the sole legal tender in Zimbabwe.

Government said the removal of multi-currency system was meant to curtail pricing distortions and rising inflation, which stood at nearly 100% at the end of May, up from 67% at the end of April.

The multi-currency system, government said, had created fiscal and monetary challenges in the economy, making the majority of companies uncompetitive.