Economic Collapse: Zimbabweans exchange ZimDollar forUSD
Zimbabweans are rushing to banks with trillions of worthless Zimbabwean dollars (ZimDollar) after the country’s central bank called on those still holding the local currency to exchange it for few US dollars, reports TVC News.
In 2009, the Zimbabwe government scrapped its local currency the ZimDollar and replaced it with the US dollar and South African Rand after it had been hit by hyperinflation which reached the world record of 231 million percent and also at that time the highest currency note was one trillion ZimDollar.
And now the banks are exchanging the ZimDollar notes for as little as US$2-US$5.
After the scrapping of the ZimDollar and formation of the unity government between President Robert Mugabe’s ruling Zanu PF party and the main opposition MDC in 2009, the Zimbabwean economy slightly improved. But following the ruling party’s disputed election victory in 2013 the Zimbabwe economy crumbled again.
Most local economists blame corruption in President Robert Mugabe’s government for the recent economic collapse.
But Mugabe’s administration says the trade sanctions imposed by Western countries on Zimbabwe is responsible for the meltdown.
Over a decade ago the EU , US and other Western countries imposed sanctions on Mugabe and his cronies over violation of human rights .