Zimbabwe adopts Chinese yuan as legal currency

Zimbabwe adopts Chinese yuan as legal currency
Published: 10 August 2015 (1484 Views)
Zimbabwe has adopted the Chinese yuan as one of its legal currencies, but it remains unclear if this is good news for China, the Changjiang Times reported on Monday.

Zimbabwe's own currency, the old Zimbabwean dollar, ceased circulation in 2009 and would have converted into yuan at a ratio of 40 trillion to one.

The move by Zimbabwe signifies the expansion of the yuan into the global trading market.

However, Xu Qiyuan, a researcher at the Chinese Academy of Social Sciences, says it may put a heavy financial burden on China, which could be held accountable for the stability of Zimbabwe's financial system.

Xu says Zimbabwe can establish a yuan-centered currency system only if it meets certain conditions, including strict controls on financial deficits and the volume of foreign debt.

Zimbabwe, once a colony of the UK, has seen significant inflation over the years. Therefore, Zimbabwe has introduced several foreign currencies for relief. Meanwhile, there is no rush to reenact the Zimbabwean dollar, says Charity Dhiwayo, governor of the Reserve Bank of Zimbabwe.

In 2009, Zimbabwe adopted the US dollar and the South African rand. In 2014, Zimbabwe announced it would accept more foreign currencies, including the Japanese yen, the Australian dollar, the Indian rupee, and the Chinese yuan. However, in practice, the US dollar has been dominant in local markets.

- 29Ecns.cn

Tags: Yuan, Zimdollar,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

PHOTOS: Job Sikhala becomes an instant internet joke

by Social media | 03 October 2019 | 195 Views

America says it is worried about Zimbabwe

by Mandla Ndlovu | 03 October 2019 | 216 Views

Madinda Ndlovu to be discharged tomorrow

by Staff reporter | 03 October 2019 | 152 Views

What are behavioral disorders and how can they be managed?

by Temba Munsaka | 03 October 2019 | 152 Views

Government speaks on Robert Mugabe's body parts

by Mandla Ndlovu | 03 October 2019 | 238 Views

Zacc recovers $100m property from looters

by Staff reporter | 03 October 2019 | 150 Views

WATCH: Mnangagwa apologises for destroying Zimbabwe satire

by Mandla Ndlovu | 03 October 2019 | 143 Views

Mphoko's application for release of passport dismissed

by Staff reporter | 03 October 2019 | 117 Views

Zanu-PF restructuring exercise begins

by Staff reporter | 03 October 2019 | 117 Views

Petrotrade declares $1.5 million dividend

by Staff reporter | 03 October 2019 | 99 Views

MSU, Zupco seal bus deal

by Staff reporter | 03 October 2019 | 162 Views

Mnangagwa to open ZMF conference

by Staff reporter | 03 October 2019 | 126 Views

High Court sets EcoCash hearing date

by Staff reporter | 03 October 2019 | 125 Views

Mphoko barred from leaving Zimbabwe

by ZimLive | 03 October 2019 | 125 Views

CIO agents monitor Jonathan Moyo in Kenya

by Mandla Ndlovu | 03 October 2019 | 340 Views

Acie Lumumba targets criminals around Mnangagwa

by Mandla Ndlovu | 03 October 2019 | 291 Views

$100 limit for cash-out transactions

by Staff reporter | 03 October 2019 | 219 Views

ANC starts anti-sanctions campaign

by Staff reporter | 03 October 2019 | 150 Views

ZESN calls for political parties regulation

by Staff reporter | 03 October 2019 | 132 Views

We've no forced labour evidence on Zimbabwe diamonds, says US Embassy

by Staff reporter | 03 October 2019 | 144 Views

Ex-ZPC board chairman freed on bail

by Staff reporter | 03 October 2019 | 146 Views

Cyber Bill seeks to safeguard citizens

by Staff reporter | 03 October 2019 | 114 Views

Cassava launches Vaya tractor services

by Staff reporter | 03 October 2019 | 148 Views

MDC Alliance boycott slammed

by Staff reporter | 03 October 2019 | 88 Views

10-man Bulawayo Chiefs stun Harare City

by Staff reporter | 03 October 2019 | 118 Views

Zimbabwe has a reputational problem, says US

by newzimbabwe | 03 October 2019 | 129 Views

MDC Alliance walk of shame

by Nduduzo Tshuma | 03 October 2019 | 155 Views

MDC councillors want suspension of Cowdray Park projects

by Staff reporter | 03 October 2019 | 117 Views

RBZ floats $300m additional TBs

by Staff reporter | 03 October 2019 | 111 Views

Teenagers rob soldier

by Staff reporter | 03 October 2019 | 126 Views

Duo rape corpse, get death sentence

by Staff reporter | 03 October 2019 | 133 Views

Mnangagwa to fly out for the zenith times

by Staff reporter | 03 October 2019 | 111 Views

Chamisa's MPs approach court to reverse 5 months allowance garnish

by newzimbabwe | 03 October 2019 | 71 Views

Zimra official forges Customs papers

by Staff reporter | 03 October 2019 | 57 Views

Zifa courts two nations for Warriors' friendlies

by Staff reporter | 03 October 2019 | 44 Views