Zimbabwe phases out its local currency

Following several years of hyperinflation, which reached a record high of 500 billion percent in 2008, the central bank of Zimbabwe decided to phase out its local currency.

Starting from Monday, Zimbabweans can exchange their bank accounts of up to 175 quadrillion (175,000,000,000,000,000) Zimbabwean dollars for just five U.S. dollars.

For higher balances, the exchange rate of Z$35 quadrillion will be US$1.

It is worthwhile to mention that Zimbabwe has been using the U.S. dollar and South Africa rand in financial transactions since 2009.

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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