Uncategorized

Zimbabwe’s currency crackdown accelerates dollarisation

Published

3 years ago

October 18, 2022

BY RAY NDLOVU

A crackdown by authorities in Zimbabwe to support the local currency and fight inflation has increased the use of United States dollars in local transactions, according to the country’s oldest brokerage.

“Ironically, the authorities’ clampdown on Zimbabwe dollar payments created such a squeeze that it has had the unintended consequence of driving dollarisation at a faster pace,” Imara Asset Management CEO John Legat said in the Harare-based company’s latest quarterly investment notes to clients.

Banks are now offering US dollar loans and listed companies carry out more transactions in the greenback as they reel from a shortage of Zimbabwe dollars. “Even government is increasingly using US dollars for its own payments,” he said.

Since May, authorities have adopted a series of measures, including raising the benchmark interest rate to 200 percent, introducing gold coins, imposing taxes on capital markets and halting payments to government contractors and suppliers to try to reduce money supply.

Those actions dried up excess liquidity and succeeded in bringing the official local currency rate in line with the parallel rate.

The government has struggled to successfully reintroduce its currency into the economy after abandoning its unit for more than a decade because of hyperinflation in the late 2010s.

Zimbabwe dollar transactions have nearly halved in volume and value terms since the end of last year on banking and mobile-banking platforms, according to data from the central bank.

The value processed by the National Payments System was $1.9bn from 36-million transactions in September. That compares with a monthly average of $4.2bn last year from about 120-million monthly transactions.

An increase in the use of US dollars does, however, mean companies have sufficient foreign exchange to import capital equipment without using the central bank auction, alleviating an obstacle to trade that other countries have faced because of a strong US currency.-Bloomberg

In the community

Victoria Falls man sentenced to six months for domestic violence

Published

19 hours ago

August 15, 2025

VicFallsLive

BY STAFF REPORTER

A 33-year-old Victoria Falls man has been sentenced to 6 months imprisonment for domestic violence charges. The sentence was handed down by the Victoria Falls Magistrates’ Court.

The man, from Chinotimba, was arrested on August 3 for a domestic violence charge. According to the National Prosecuting Authority, the facts of the matter are as follows: a misunderstanding arose between the offender and his 32-year-old wife over money left in her jacket. Later that evening, the offender shouted at his wife before strangling her several times on the neck. The victim reported the matter to the police, which led to the offender’s arrest.

The court sentenced the offender to 6 months imprisonment, with two months suspended for five years on condition of good behavior.

A further four months were suspended on the condition that he performs 140 hours of community service.

National

Zimbabwe roads claim 24 lives over Heroes holiday

Published

2 days ago

August 14, 2025

VicFallsLive

BY NOKUTHABA DLAMINI

A total of 24 people lost their lives on Zimbabwe’s roads during the 2025 Heroes and Defence Forces holidays, according to statistics released by the Zimbabwe Republic Police.

The police reported 196 road traffic accidents, 13 of which were fatal, between August 11 and 13. This represents a significant increase from the previous year’s figures, which saw 149 accidents and eight fatalities.

Reckless driving, mechanical faults, speeding, and overtaking errors were cited as major causes of the accidents.

Two major accidents occurred during the period, including a fatal crash on the Mutare-Masvingo Road that claimed the lives of six Zion Christian Church congregants. Another accident on the Bindura-Shamva Road resulted in four fatalities and 17 injuries.

The police have urged motorists to prioritize vehicle maintenance, avoid speeding and reckless overtaking, and adhere to road rules and regulations to prevent further loss of life.

In the community

Dete teen convicted for theft

Published

2 days ago

August 14, 2025

VicFallsLive

BY WANDILE TSHUMA

A Dete teenager has been convicted of breaking into a local shop and stealing goods and cash worth US$131.

Artwell Ncube, 18, of Lupote in Dete, was found guilty of aggravated unlawful entry by the Hwange Magistrates Court.

According to court records, Ncube used an unknown object to open the locked shop door between May 20 and 25, 2025. Once inside, he stole groceries, airtime, and US$50 in cash.

The shop owner unexpectedly returned to the premises on May 25 at midnight and found Ncube inside. The teenager fled, leaving some stolen items behind.

A subsequent police investigation led to Ncube’s arrest. Property worth US$31 was recovered.

Ncube was sentenced to 12 months’ imprisonment, which was fully suspended on condition that he repays ZWG3 516.04 to the complainant within six months and performs 110 hours of community service at Lupote Clinic which he started on Wednesday.