You are here: HomeNewsHealth2020 03 27Article 350833

Africa News of Friday, 27 March 2020

Source: www.mynigeria.com

Zimbabwe reinstates foreign currency to ease COVID-19 effect

Image: Getty Images/Dan Kitwood Image: Getty Images/Dan Kitwood

The government of Zimbabwe has announced the reintroduction of foreign currencies in order to help ease the effect of the coronavirus.

As a result, foreign currencies will now be used for domestic transactions thereby enabling the country to access private foreign exchange savings. The country lifted the ban it placed on the currencies in June 2019.

So far, Zimbabwe has recorded five cases of coronavirus with one death as of March 27, according to Worldometer.

The BBC reports that, Zimbabwe had used a number of foreign currencies since hyperinflation forced the government to ditch the Zimbabwe dollar in 2009. Last year's ban on foreign currency was intended to restore normalcy to the economy.

On Thursday, the country’s central bank also reduced its main lending rate to 25% from 35% and set a fixed exchange rate as part of measures to support the economy against the pandemic.

John Mangudya, the central bank’s governor, said he expected banks to cut lending rates to customers.