Zimbabwe then began currency reforms meant to set the local dollar on a firm footing, but economists say the experiment has failed and a return to the US dollar is now inevitable.
The government also started partially settling civil servants’ wages in foreign currency to pacify unions that have been clamouring for a return to the US dollar due to the volatility of the local currency.
“The rejection of the local currency and rising inflation is a vote of no confidence on government policies by the economy,” said Peter Mutasa, the Zimbabwe Congress of Trade Unions president.
Former finance minister Tendai Biti said the measures set by the Reserve Bank of Zimbabwe to stop the collapse of the local dollar were futile as the economic environment did not allow for a stable currency.
Mr Biti said Zimbabwe’s economy has gone off the rails under President Mnangagwa’s leadership, and that the currency collapse was a symptom of bigger problems.
