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Zim allows use of foreign money
News24
September 10, 2008
http://www.news24.com/News24/Africa/Zimbabwe/0,,2-11-1662_2391109,00.html
Zimbabwe said
on Wednesday it will license shops to sell goods in foreign currency
to help ease shortages, the clearest sign authorities are losing
the battle against a thriving black market.
Central bank Governor
Gideon Gono said 1 000 retailers and 200 wholesalers will be allowed
to sell in foreign money, while motorists could also buy fuel in
foreign currency.
"With immediate
effect there will be foreign currency licensed warehouses and shops
and we are doing this for an initial period of 18 months, as an
experiment," he told reporters.
The most used foreign
currencies in Zimbabwe are the South African rand and the US dollar.
Zimbabwe is suffering
a political crisis and economic meltdown, with inflation running
at more than 11 million percent and unemployment at about 80%.
Basic goods are scarce
and the central bank has repeatedly re-denominated the Zimbabwe
dollar to try keep up with inflation.
In its latest move it
lopped off 10 zeros on August 1 to help bring relief to consumers
forced to carry large bags of money to buy everyday goods.
But while the official
rate to the US dollar stands at 60, the black market rate has plunged
to 2 000 to the greenback.
Analysts say the economy
is unlikely to rebound until a post-election crisis is resolved.
President Robert Mugabe and opposition MDC leader Morgan Tsvangirai
are in talks to forge a new all-inclusive government after a disputed
election.
Gono said manufacturers
could sell to the licensed shops in foreign currency, and that both
Zimbabweans and foreigners would be allowed to run the stores.
Despite the move, he
stressed the Zimbabwe dollar remained the official currency.
"Some of you may
ask, 'are we now trying to dollarise the economy?' No, the Zimbabwe
dollar remains the legal tender," Gono said.
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