Zimbabwe Bans Use of Foreign Currency as Legal Tender

by Martin Edwards - General Manager
27th June 2019

News, Zimbabwe

SHARE THIS STORY

sep gray

The Reserve Bank of Zimbabwe has made the Zimbabwean dollar the sole currency for legal tender purposes. Coming into effect on 24th June, the United States dollar, South African rand, British pound, Botswana pula and any other foreign currency whatsoever shall no longer be a legal tender alongside the Zimbabwean dollar. This ends the multiple currency regime that Zimbabwe has been using.

We are still in the process of understanding the reintroduction of the Zimbabwe dollar as the local currency in Zimbabwe and the implications thereof, however, in the interim, please see below for the current status:

  • The Ministry has implemented this so that Zimbabwe, once more, has its own currency
  • The main difference is that when a person purchases goods from a local shop, only local Zimbabwe dollar cash will be accepted. Thus, United States dollar, South African rand cash etc will no longer be considered legal tender. Foreign credit cards will however continue to be accepted.
  • Foreign payments will continue to be accepted at Ports of Entry for visa payments etc.
  • Foreign credit cards will continue to be accepted at hotels, shops and restaurants as they simply apply the applicable rate of exchange on the transaction. This will also apply to any booking of activities and transfers on the ground.
  • Where cash is needed, such as tipping, this can still be done using forex.

Our partner in Zimbabwe are seeking additional clarification from financial specialists and will communicate any updates as soon as they are received.

In summary, visitors to Zimbabwe should not be affected as they can still use their credit cards at all shops, hotels, restaurants etc. and use forex cash for tipping.

sep gray