In the News

Currency Reform - Is Zimbabwe zigzagging into further currency chaos?

Graham Watson

5th May 2024

Evidence here of the importance of a sound currency to a successful economy comes from Zimbabwe where the introduction of a new local currency has caused a degree of chaos.

The lack of faith in Zimbabwean currency is reflected in the fact that many traders already only accept US dollars, and use the local currency to give change. However, a shortage of the new money - the Zig - which stands for "Zimbabwe gold" - means that even menial transactions for things like bags of peanuts have become increasingly fraught.

The launch of the currency is another attempt to try and rein in inflation; the evidence, so far, is that it isn't working.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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