Yesterday, the government sprung a surprise, they gazetted Statutory Instrument 142 of 2019, which scrapped the multicurrency system Zimbabwe has been using for more than ten years and made the Zimbabwean dollar the sole legal tender of Zimbabwe.
Laying the groundwork
For the past few weeks, various principles in the Zimbabwean government led by Mthuli Ncube, the Finance Minister and the President himself have been on a charm offensive to convince us that we, Zimbabwe, need our own currency.
The tone of message was bullish with a hint that they really were not trying to convince us but simply telling us what they were going to do. They were not really looking for approval.
A shock move
So while its not a suprise that this happened the real shock was how little time passed between them saying a new currency would be introduced and when they introduced it.
On multiple occasions both the President and his Finance Minister hinted Zimbabwe would have a new currency by year end. At times they said in nine months. All this hinted to a new currency being introduced later in the year.
Turns out they were laying a trap. Trying to lure people in before springing a shock move. And so here we are the Zimbabwe dollar is back!
If you want to learn the basics of money go to read these Commerce Notes