Zimbabwean dollar (2019–2024) facts for kids

Quick facts for kids Zimbabwean dollar (2019–2024)
Banknotes
ISO 4217 Code	ZWL
User(s)	Zimbabwe
Inflation	55.34%
Source	#REDIRECT Template:Plainlinks, March 2024
Method	CPI
Subunit
1⁄100	cent
Symbol	$
cent	¢
Nickname	Zimdollar, Zollar
Coins
Rarely used	1¢, 5¢, 10¢, 25¢, 50¢, $1, $2
Banknotes
Freq. used	$10, $20, $50, $100
Rarely used	$2, $5
Printer	De La Rue Giesecke+Devrient Oberthur Technologies
This infobox shows the latest status before this currency was rendered obsolete.

The Zimbabwean dollar (sign: Z$; code: ZWL), also known as the Zimdollar, was the money used in Zimbabwe from February 2019 to April 2024. For a while, it was the only money allowed for buying and selling things in Zimbabwe. However, foreign money was allowed again later.

Because the Zimdollar quickly lost its value, most people in Zimbabwe started using stronger foreign money, like the U.S. dollar. On April 5, 2024, it was announced that the Zimdollar would be replaced by a new currency called the Zimbabwean ZiG (ZiG). This new money is backed by gold and started on April 8, 2024.

History of the Zimdollar

Why a New Currency Was Needed

In 2009, the government of Zimbabwe allowed people to use foreign money, like the United States dollar and the South African rand. This happened because the old Zimbabwean dollar had lost almost all its value due to very high inflation. Inflation means prices go up very quickly. The old dollar was eventually stopped completely in 2009.

Using many different currencies caused a problem: Zimbabwe was buying more goods from other countries than it was selling. This meant a lot of US dollars were leaving the country. To fix this, the Reserve Bank of Zimbabwe introduced special Zimbabwean bond coins in 2014 and Zimbabwean bond notes in 2016. These were meant to be worth the same as the US dollar.

However, people didn't fully trust the bond money. They worried it was just a way to bring back the old, unstable Zimbabwean dollar. Because of this, a "parallel market" appeared. This meant you could get more bond money for your US dollars than the official rate.

The Fifth Zimbabwean Dollar Arrives

The difference in exchange rates and the shortage of US dollars made it hard for the Reserve Bank to keep the bond money officially equal to the US dollar. So, on February 20, 2019, the Reserve Bank announced a new Zimbabwean dollar. It was first called the Real Time Gross Settlement dollar (RTGS dollar).

This new RTGS dollar started trading on February 25, 2019. It included the existing Zimbabwean bond notes and Zimbabwean bond coins. Their value was changed so that Z$2.50 of the new money was equal to one US dollar.

On June 24, 2019, the government officially renamed the RTGS dollar to the Zimbabwean dollar. They also tried to stop people from using foreign money for local transactions. But many people were against this ban because of high inflation and the need to buy goods from other countries using foreign money. When the coronavirus pandemic started, the Reserve Bank had to allow foreign money again on March 29, 2020.

Later, new banknotes were introduced, including a $2 bond coin and new $2 and $5 banknotes without the "bond note" label. Higher value banknotes, like the $100 note, came out in 2022.

Ongoing High Inflation

The fifth Zimbabwean dollar continued to suffer from very high inflation. This was due to people's lack of trust and the ongoing shortage of foreign money. The official value of the Zimdollar against the US dollar dropped quickly. For example, in March 2019, it was Z$2.80 for one US dollar, but by June 2019, it was Z$6.00. The unofficial rate was even higher.

Inflation rates went over 100% in June 2019 and over 500% in December 2019. By December 2022, the annual inflation rate was 243.76%. Because of this, people used the Zimdollar less and less, preferring foreign money.

The Zimbabwean dollar kept losing value. From January to April 2024, it lost over 70% of its value. On April 5, 2024, it reached Z$30,000 for one US dollar.

The New Zimbabwean ZiG

On April 5, 2024, the Reserve Bank of Zimbabwe announced a brand new currency: the Zimbabwe Gold (ZiG). This new money was introduced on April 8, 2024, and replaced the Zimbabwean dollar.

The ZiG is special because it is backed by a mix of foreign money and precious metals, mainly gold. This means its value is tied to these reserves, which should make it more stable. People in Zimbabwe were given 21 days to exchange their old Zimdollars for the new ZiG. The Reserve Bank hopes the ZiG will help control inflation and will be used alongside foreign currencies.

Zimbabwean Banknotes

The Zimbabwean banknotes issued since 2016 have the signature of John Mangudya, who was the governor of the Reserve Bank of Zimbabwe.

Due to high inflation, the Reserve Bank started removing $2 and $5 banknotes from circulation in 2022. By April 2022, these notes were worth very little in US cents.

2019–2024 Banknote Series

On November 11, 2019, the Reserve Bank started issuing regular banknotes again. The $2 and $5 banknotes looked similar to the older bond notes but did not have "bond note" written on them. Later, $10 and $20 notes were introduced in 2020.

The $50 note came out on July 6, 2021. It was the first Zimbabwean banknote since 1970 to feature a person: Mbuya Nehanda, an important figure in Zimbabwean history. Her portrait appears with the Tomb of the Unknown Soldier. The $100 banknote, released on April 5, 2022, showed the famous ruins of Great Zimbabwe.

How the Zimdollar Related to Other Currencies

When the RTGS Dollar was first introduced in February 2019, people in Zimbabwe were using a mix of foreign currencies, including the US dollar, the South African rand, and the Chinese yuan. On June 24, 2019, the Zimbabwean government tried to ban the use of foreign money for local transactions.

However, because of high inflation and the ongoing coronavirus pandemic, the government had to allow people to use foreign money again on March 29, 2020. Even though this was meant to be temporary, many people, including government workers, started asking to be paid in US dollars because the Zimdollar was losing value so fast. By March 2024, about 80% of all transactions in Zimbabwe were done in US dollars. The government decided to keep foreign currencies as legal money until 2030.

Exchange Rates and Value

In March 2020, there was an attempt to set the Zimdollar's value at 25 RTGS dollars for every US dollar. But inflation continued, and this plan was stopped.

The exchange rate for the Zimdollar was decided by how much people wanted to buy or sell it on a special market set up by the Reserve Bank. This market involved banks and money exchange places.

In June 2020, the Reserve Bank started a new weekly auction for foreign money to try and control the high inflation. But the Zimdollar kept losing value. By May 2022, it was officially worth about 165.94 Zimdollars for one US dollar, but on the unofficial market, it was much lower, around 330 to 400 Zimdollars for one US dollar. To try and stop people from betting against the Zimdollar, the government even told banks to stop lending money in May 2022.

In July 2022, the Reserve Bank of Zimbabwe introduced official gold coins called "Mosi-oa-Tunya". These coins were meant to be a way for people to keep their money's value. They could be bought with either Zimdollars or US dollars, based on the international price of gold. In February 2024, it was suggested that the Zimbabwean dollar's value could be linked to gold, which would make Zimbabwe the only country in the world with a gold standard.

The Zimbabwean dollar lost value very quickly before it was replaced. For example, between May and June 2023, its official value dropped from Z$1,070.42 to Z$6,351.50 for one US dollar. By April 5, 2024, the day the new currency was announced, it had reached Z$30,000 for one US dollar.

See Also

• Zimbabwean bond notes
• Zimbabwean bond coins
• Zimbabwe Gold