The Economy of Zimbabwe
Dollarisation and Partial Recovery
In 2009 Zimbabwe abandoned its currency and adopted the US dollar and other foreign currencies, ending hyperinflation and restoring growth.
A foreign currency as a fix.
2009
The Zimbabwe dollar was suspended and foreign currencies became legal tender.
Results
Inflation collapsed, and growth returned.
Limits
The country lost the ability to print money, but also faced a shortage of dollars.
Later problems
Cash shortages and the reintroduction of local currencies led to inflation again.
A stable price
Shop prices became stable for the first time in years.
Assuming dollarisation solves every problem
Dollar shortages emerge.
Key takeaways
- Foreign currencies became legal tender.
- Inflation fell.
- Dollar shortages arose.
- Local currencies returned.
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