Tuesday, February 4, 2014

Indian Rupee to be legal tender in Zimbabwe


The Reserve Bank of Zimbabwe (RBZ) announced Indian rupee as a legal tender on 29 January 2014. RBZ was
adding Indian Rupee and three other Asian currencies to the basket of currencies to be circulated in the country. These include China, Japan and Australia. The public can now open accounts in Chinese Yuans, Australian Dollars, Indian Rupees and Japanese Yens. Till now, Zimbabwe accepted the US dollar and the South African rand as the main legal tender, which helped the country to stabilize the economy after world-record inflation threw it into a tailspin.
In addition to the Botswana Pula, British Sterling Pound, Euro, South African Rand and United States Dollar, the central bank also added the Australian Dollar (AUD), Chinese Yuan (CYN), Indian Rupee (INR) and Japanese Yen. The addition of four Asian currencies to the international currencies stands to nine which are circulating in the country. Zimbabwe abandoned the use of its own currency in 2009 after world record inflation levels precipitated an economic collapse under the Zanu PF government. It was a coalition government in 2009 that introduced the multi-currency system that brought stability in Zimbabwe.