The Zimbabwe government has declared its plans to eventually eliminate the use of the US dollar and instead adopt the Zimbabwean dollar. Their intention is to regain control of the national monetary system and also to reduce the dependency on foreign currency.
This choice by the government has caused a lot of public outcry as most citizens recall what happened during the hyperinflation crisis of the late 2000s.
The transition to the new dollar has made Zimbabweans remember the past and they are now afraid that the country might face another hyperinflation crisis, which is why they compare it with the time when the Zimbabwe dollar was rendered almost worthless before the country decided to use foreign currencies, mainly the US dollar, in 2009.
People are still very doubtful about going back to a currency that was a total collapse in the past.
Small businesses together with the traders are very much against the idea and are of the opinion that this change will greatly interrupt the flow of business especially the import-dependent industries.
They fear that if there are no enough reserves and proper monetary discipline, the Zimbabwe dollar will lose its value quickly and that will greatly affect the purchasing power of consumers as well as the viability of businesses.
The government officials have tried to assure the citizens that it will be a well-planned and controlled, slow process along with measures to stabilize the currency. The Ministry of Finance has said that the use of foreign currencies will not be discontinued and they will be accepted even in some transactions during the period to make the change easier.
Firstly, Zimbabwe dropped its currency due to the extreme inflation that was happening in the country which reached a peak of 89.7 sextillion percent annually in 2008.
Though the government decided to bring back the Zimbabwe dollar in 2019, its price has always been unstable, which is why the use of the US dollar has not been completely replaced.
