Editing Economy of Zimbabwe (section)

== History ==
{{See also|Economic history of Zimbabwe|1997 Zimbabwean Black Friday}}
[[File:Zim GDP growth 1980-2010.svg|right|thumb|250px| Zimbabwe's [[GDP]] annual percentage growth rate from 1980 to 2010.<ref name="WDI">{{cite web | url=http://databank.worldbank.org/ddp/home.do?Step=3&id=4 | title=World Development Indicators | publisher=World Bank | access-date=January 6, 2012 | archive-date=April 11, 2013 | archive-url=https://web.archive.org/web/20130411213903/http://databank.worldbank.org/ddp/home.do?Step=3 | url-status=live }}</ref>]]In 1997, Zimbabwe's economic decline began to visibly take place. It began with the crash of the stock market on November 14, 1997. Civil society groups began to agitate for their rights as these had been eroded under ESAP. In 1997 alone, 232 strikes were recorded, the largest number in any year since independence (Kanyenze 2004). During the first half of 1997, the war veterans organized themselves and demonstrations that were initially ignored by the government. As the intensity of the strikes grew, the government was forced to pay the war veterans a once-off gratuity of ZWD $50,000 by December 31, 1997, and a monthly pension of US$2,000 beginning January 1998 (Kanyenze 2004). To raise money for this unbudgeted expense, the government tried to introduce a ‘war veterans’ levy,’ but they faced much opposition from the labor force and had to effectively borrow money to meet these obligations. Following the massive depreciation of the [[Zimbabwean dollar]] in 1997, the cost of agricultural inputs soared, undermining the viability of the producers who in turn demanded that the producer price of maize (corn) be raised. Millers then hiked prices by 24 percent in January 1998 by 24 percent and the consequent increase in the price of maize meal triggered nation-wide riots during the last month. The government intervened by introducing price controls on all basic commodities (Kanyenze 2004). Multiple interventionist moves were undertaken to try to reverse some of the negative effects of the [[Structural Adjustment Programs]] and to try to strengthen the private sector that was suffering from decreasing output and increasing competition from cheap imported products. Some of the most detrimental policies that followed include:<ref>{{Cite journal|last=Munangagwa|first=Chidochashe L.|date=27 May 2021|title=The Economic Decline of Zimbabwe|url=https://cupola.gettysburg.edu/cgi/viewcontent.cgi?article=1021&context=ger|journal=The Gettysburg Economic Review|volume=3|pages=114|access-date=27 May 2021|archive-date=27 May 2021|archive-url=https://web.archive.org/web/20210527110915/https://cupola.gettysburg.edu/cgi/viewcontent.cgi?article=1021&context=ger|url-status=live}}</ref>{{multiple image
| header            = '''GDP per capita'''
| direction         = vertical
| width             = 250
| align             = right
| image1            = Zimbabwe GDP per cap 2015.png
| caption1          = [[GDP per capita]] in current US dollars from 1980 to 2014. The graph compares Zimbabwe (blue {{color box|#0000FF}}) and all of [[Sub-Saharan Africa]]'s (yellow {{color box|#DAA520}}) GDP per capita. Different periods in Zimbabwe's recent economic history such as the land reform period (pink {{color box|#FFC0CB}}), hyperinflation (grey {{color box|#C0C0C0}}), and the dollarization/government of national unity period (light blue {{color box|#ADD8E6}}) are also highlighted.  It shows that economic activity declined in Zimbabwe over the period that the land reforms took place whilst the rest of Africa rapidly overtook the country in the same period.<ref name="WDI"/>
| image2            = GDP per capita (current), % of world average, 1960-2012; Zimbabwe, South Africa, Botswana, Zambia, Mozambique.png
| caption2          = GDP per capita (current) of Zimbabwe (blue {{color box|#0000FF}}) from 1960 to 2012, compared to neighbouring countries (world average = 100)
}}

===1980–2000===
At the time of independence, annual inflation was 5.4 percent and month-to-month inflation was 0.5 percent. Currency of Z$2, Z$5, Z$10 and Z$20 denominations were released. Roughly 95 percent of transactions used the Zimbabwean dollar.<ref name="dallasfed.org">{{cite report |url=http://www.dallasfed.org/assets/documents/institute/annual/2011/annual11b.pdf |title=Hyperinflation in Zimbabwe |last=Koech |first=Janet |date=2011 |publisher=[[Federal Reserve Bank of Dallas]] |access-date=2013-01-31 |archive-url=https://web.archive.org/web/20201104063506/https://www.dallasfed.org/~/media/documents/institute/annual/2011/annual11b.pdf |archive-date=2020-11-04 |url-status=live}}</ref>
Following the [[Lancaster House Agreement]] in December 1979, the transition to majority rule in early 1980, and the lifting of sanctions, Zimbabwe enjoyed a brisk economic recovery. Real growth for 1980–1981 exceeded 20%. However, depressed foreign demand for the country's mineral exports and the onset of a drought cut sharply into the growth rate in 1982, 1983, and 1984. In 1985, the economy rebounded strongly due to a 30% jump in agricultural production. However, it slumped in 1986 to a zero growth rate and registered a negative of about 3% in 1987, primarily because of drought and the foreign exchange crisis faced by the country.<ref>{{Cite journal|last=Munangagwa|first=Chidochashe|date=30 May 2021|title=The Economic Decline of Zimbabwe|url=https://cupola.gettysburg.edu/cgi/viewcontent.cgi?article=1021&context=ger|journal=African Studies Commons, International Economics Commons, Public Economics|volume=3|pages=5|access-date=27 May 2021|archive-date=27 May 2021|archive-url=https://web.archive.org/web/20210527110915/https://cupola.gettysburg.edu/cgi/viewcontent.cgi?article=1021&context=ger|url-status=live}}</ref>{{Citation needed|date=December 2007}} Zimbabwe's [[GDP]] grew on average by about 4.5% between 1980 and 1990.<ref name=b>{{cite book|last=Steenkamp|first=Philip John|author2=Rodney Dobell|year=1994|title=Public Management in a Borderless Economy|page=664}}</ref>

In 1992, a World Bank study indicated that more than 500 health centres had been built since 1980. The percentage of children vaccinated increased from 25% in 1980 to 67% in 1988, and life expectancy increased from 55 to 59 years. Enrolment increased by 232 percent one year after primary education was made free, and secondary school enrolment increased by 33 percent in two years. These social policies lead to an increase in the debt ratio. Several laws were passed in the 1980s in an attempt to reduce wage gaps. However, the gaps remained considerable. In 1988, the law gave women, at least in theory, the same rights as men. Previously, they could only take a few personal initiatives without the consent of their father or husband.<ref>Zimbabwe's development experiment 1980–1989, Peter Makaye and Constantine Munhande, 2013</ref>

The government started crumbling when a bonus to independence war veterans was announced in 1997 (which was equal to 3 percent of GDP) followed by unexpected spending due to Zimbabwe's involvement in the [[Second Congo War]] in 1998. In 1999, the country also witnessed a drought which further weakened the economy, ultimately leading to the country's bankruptcy in the next decade.<ref name="dallasfed.org" />  In the same year, 1999, Zimbabwe experienced its first [[Default (finance)|defaults]] on its [[International Monetary Fund|IMF]], [[World Bank]], and [[African Development Bank]] debts in addition to debts taken out with Western lenders.<ref name="DefaultIMFwbIMF">{{cite web | url=http://www.zimbabwesituation.com/news/zimsit_w_govt-seeks-new-world-bank-imf-loans/ | title=Govt seeks new World Bank, IMF loans | publisher=New Zimbabwe | date=15 October 2015 | access-date=18 October 2015 | archive-date=5 August 2020 | archive-url=https://web.archive.org/web/20200805031543/https://www.zimbabwesituation.com/news/zimsit_w_govt-seeks-new-world-bank-imf-loans/ | url-status=live }}</ref>

===2000–2009===
{{See also|Land reform in Zimbabwe}}
In recent years, there has been economic hardship in Zimbabwe. Multiple western countries argue that the [[Government of Zimbabwe]]'s [[Land reform in Zimbabwe|land reform program]], recurrent interference with, and intimidation of the judiciary, as well as maintenance of unrealistic price controls and exchange rates has led to a sharp drop in investor confidence.

Between 2000 and December 2007, the national economy contracted by as much as 40%; inflation vaulted to over 66,000%, and there were persistent shortages of [[hard currency]], fuel, medicine, and food. GDP per capita dropped by 40%, agricultural output dropped by 51% and industrial production dropped by 47%.<ref>{{Cite book|last=Rukuni|first=Mandivamba|title=Zimbabwe's Agriculture Revolution Revisited|publisher=University of Zimbabwe|year=2006|isbn=0-86924-141-9|location=Zimbabwe Publication|pages=14, 15, 16}}</ref> {{Citation needed|date=March 2021}}

The Mugabe Government attribute Zimbabwe's economic difficulties to sanctions imposed by the Western powers. It has been argued{{By whom|date=April 2010}} that the sanctions imposed by Britain, the US, and the EU have been designed to cripple the economy and the conditions of the Zimbabwean people in an attempt to overthrow President Mugabe's government. These countries on their side argue that the sanctions are targeted against Mugabe and his inner circle and some of the companies they own. Critics{{Who|date=April 2010}} point to the so-called "[[Zimbabwe Democracy and Economic Recovery Act of 2001]]", signed by Bush, as an effort to undermine Zimbabwe's economy. Soon after the bill was signed, IMF cut off its resources to Zimbabwe. Financial institutions began withdrawing support for Zimbabwe. Terms of the sanctions made it such that all economic assistance would be structured in support of "democratisation, respect for human rights and the rule of law." The EU terminated its support for all projects in Zimbabwe. Because of the sanctions and US and EU foreign policy, none of Zimbabwe's debts have been cancelled as in other countries.<ref>{{cite web |url=http://allafrica.com/stories/200903060382.html |title=Zimbabwe: Sanctions – Neither Smart Nor Targeted |publisher=Allafrica.com |date=2009-03-06 |access-date=2010-05-30 |archive-date=2012-10-17 |archive-url=https://web.archive.org/web/20121017053632/http://allafrica.com/stories/200903060382.html |url-status=live }}</ref>

Other observers also point out how the asset freezes by the EU on people or companies associated with Zimbabwe's Government have had significant economic and social costs to Zimbabwe.<ref>{{cite web |url=http://www.newzimbabwe.com/pages/sanctions36.13187.html |title=Zimbabwe sanctions: are they political or economic? |publisher=Newzimbabwe.com |access-date=2010-05-30 |url-status=dead |archive-url=https://web.archive.org/web/20100407194926/http://www.newzimbabwe.com/pages/sanctions36.13187.html |archive-date=2010-04-07 }}</ref>

As of February 2004, Zimbabwe's foreign debt repayments ceased, resulting in compulsory suspension from the [[International Monetary Fund]] (IMF). This, and the [[United Nations]] [[World Food Programme]] stopping its food aid due to insufficient donations from the world community, has forced the government into borrowing from local sources.

==== Hyperinflation (2004–2009) ====
{{See also|Hyperinflation in Zimbabwe}}
[[File:ZWDvsUSDchart.svg|thumb|right|Official, black market, and OMIR exchange rates Jan 1, 2001 to Feb 2, 2009. Note the [[logarithmic scale]].]]
Zimbabwe began experiencing severe foreign exchange shortages, exacerbated by the difference between the official rate and the [[black market]] rate in 2000. In 2004 a system of auctioning scarce foreign currency for importers was introduced, which temporarily led to a slight reduction in the foreign currency crisis, but by mid-2005 foreign currency shortages were once again severe. The currency was devalued by the central bank twice, first to 9,000 to the US$, and then to 17,500 to the US$ on 20 July 2005, but at that date it was reported that that was only half the rate available on the black market.

In July 2005 Zimbabwe was reported to be appealing to the South African government for US$1&nbsp;billion of emergency loans, but despite regular rumours that the idea was being discussed no substantial financial support has been publicly reported.

In December 2005 Zimbabwe made a mystery loan repayment of US$120 million to the [[International Monetary Fund]] due to expulsion threat from IMF.<ref>{{Cite web |date=2005-09-01 |title=Zimbabwe: Mugabe pays IMF - Zimbabwe {{!}} ReliefWeb |url=https://reliefweb.int/report/zimbabwe/zimbabwe-mugabe-pays-imf |access-date=2023-12-29 |website=reliefweb.int |language=en}}</ref><ref>{{Cite web |title=Zimbabwe makes $120M payment to IMF {{!}} Devex |url=https://www.devex.com/news/zimbabwe-makes-120m-payment-to-imf-46540/amp |access-date=2023-12-29 |website=www.devex.com}}</ref><ref>{{Cite news |last= |date=2005-09-01 |title=Zimbabwe Makes $120 Million Payment to I.M.F. |language=en-US |work=The New York Times |url=https://www.nytimes.com/2005/09/01/international/africa/zimbabwe-makes-120-million-payment-to-imf.html |access-date=2023-12-29 |issn=0362-4331}}</ref>

The official [[Zimbabwean dollar]] exchange rate had been frozen at Z$101,196 per U.S. dollar since early 2006, but as of 27 July 2006 the parallel (black market) rate has reached Z$550,000 per U.S. dollar. By comparison, 10&nbsp;years earlier, the rate of exchange was only Z$9.13 per USD.

In August 2006 the RBZ revalued the Zimbabwean Dollar by 1000 ZWD to 1 (revalued) dollar. At the same time Zimbabwe devalued the Zim Dollar by 60% against the [[USD]]. New official exchange rate revalued ZWD 250 per USD. The parallel market rate was about revalued ZWD 1,200 to 1,500 per USD (28 September 2006).<ref name="zz">{{Cite web |title=Timeline: Zimbabwe's economic woes |url=https://www.aljazeera.com/news/2007/3/11/timeline-zimbabwes-economic-woes |access-date=2023-10-26 |website=www.aljazeera.com |language=en}}</ref>

In November 2006, it was announced that sometime around 1 December there would be a further devaluation and that the official exchange rate would change to revalued ZWD 750 per USD.<ref name=k>{{cite web |url=http://www.zimbabwesituation.com/nov17_2006.html#Z12 |title=The Zimbabwe Situation |publisher=The Zimbabwe Situation |access-date=2010-05-30 |archive-date=2010-12-02 |archive-url=https://web.archive.org/web/20101202160239/http://zimbabwesituation.com/nov17_2006.html#Z12 |url-status=live }}</ref> This never materialized. However, the parallel market immediately reacted to this news with the parallel rate falling to ZWD 2,000 per USD (18 November 2006)<ref name=l>{{cite web |url=http://www.zimbabwesituation.com/nov19_2006.html#Z3 |title=The Zimbabwe Situation |publisher=The Zimbabwe Situation |access-date=2010-05-30 |url-status=dead |archive-url=https://web.archive.org/web/20100310015725/http://www.zimbabwesituation.com/nov19_2006.html#Z3 |archive-date=2010-03-10 }}</ref> and by year end it had fallen to ZWD 3,000 per USD.<ref name=m>{{cite web |url=http://www.zimbabwesituation.com/jan5a_2007.html#Z13 |title=The Zimbabwe Situation |publisher=The Zimbabwe Situation |access-date=2010-05-30 |archive-date=2010-01-02 |archive-url=https://web.archive.org/web/20100102115920/http://zimbabwesituation.com/jan5a_2007.html#Z13 |url-status=live }}</ref>

On 1 April 2007, the parallel market was asking ZWD 30,000 for US$1.<ref name=n>{{cite web |url=http://www.zimbabwesituation.com/apr1_2007.html#Z22 |title=The Zimbabwe Situation |publisher=The Zimbabwe Situation |access-date=2010-05-30 |archive-date=2013-05-12 |archive-url=https://web.archive.org/web/20130512103210/http://www.zimbabwesituation.com/apr1_2007.html#Z22 |url-status=live }}</ref> By year end, it was down to about ZWD 2,000,000. On 18 January 2008, the [[Reserve Bank of Zimbabwe]] began to issue higher denomination ZWD bearer cheques (a banknote with an expiry date), including $10&nbsp;million bearer cheques – each of which was worth less than US$1.35 (70p Sterling; 0.90 Euro) on the parallel market at the time of first issue. On 4 April 2008 the [[Reserve Bank of Zimbabwe]] introduced new $25&nbsp;million and $50&nbsp;million bearer cheques.<ref name=ac>{{cite news|url=http://www.thetimes.co.za/PrintEdition/Article.aspx?id=742168|title=Fear and hope mingle as Harare awaits election results|publisher=www.thetimes.co.za|date=6 April 2008|access-date=2008-04-08|archive-date=2008-04-11|archive-url=https://web.archive.org/web/20080411060409/http://www.thetimes.co.za/PrintEdition/Article.aspx?id=742168|url-status=live}}</ref> At the time of first issue they were worth US$0.70 and US$1.40 on the parallel market respectively.

On 1 May 2008, the RBZ announced that the dollar would be allowed to float in value subject to some conditions.<ref name = zz/>

On 6 May 2008, the RBZ issued new $100&nbsp;million and $250&nbsp;million bearer cheques.<ref name=ad>{{cite news|url=http://www.thetimes.co.za/News/Article.aspx?id=761117|title=Zimbabwe's new $250m note|publisher=www.thetimes.co.za|date=6 May 2008|access-date=2008-05-08|url-status=dead|archive-url=https://web.archive.org/web/20080507015514/http://www.thetimes.co.za/News/Article.aspx?id=761117|archive-date=7 May 2008}}</ref><ref name=ae>{{cite news|url=http://www.afriquenligne.fr/news/africa-news/zimbabwe-introduces-new-high-denomination-notes-200805063085.html|archive-url=https://archive.today/20120418224559/http://www.afriquenligne.fr/news/africa-news/zimbabwe-introduces-new-high-denomination-notes-200805063085.html|url-status=dead|archive-date=18 April 2012|title=Zimbabwe introduces new high denomination notes|publisher=Afriquenligne|date=6 May 2008|access-date=2008-05-08}}</ref> At the date of first issue the $250&nbsp;million bearer cheque was worth approximately US$1.30 on the parallel market. On 15 May 2008, a new $500&nbsp;million bearer cheque was issued by the RBZ.<ref name=af>{{cite news|url=http://www.int.iol.co.za/index.php?set_id=1&click_id=68&art_id=nw20080515103036882C968918|title=Introducing the new Zim note...|publisher=IOL |date=15 May 2008|access-date=2008-05-08}}</ref> At the time of the first issue it was worth US$1.93. In a widely unreported parallel move, on 15 May 2008, the RBZ issued three "special agro-cheques" with face values $5&nbsp;billion (at time of first issue – $19.30), $25&nbsp;billion ($96.50) and $50&nbsp;billion ($193).<ref name=ag>{{cite news|url=http://allafrica.com/stories/200805210105.html|title=RBZ Issues Agro Cheques|publisher=All Africa|date=21 May 2008|access-date=2008-06-02|archive-date=2008-06-07|archive-url=https://web.archive.org/web/20080607020347/http://allafrica.com/stories/200805210105.html|url-status=live}}</ref> It is further reported that the new agro-cheques can be used to buy any goods and services like the bearer cheques.

On 30 July 2008, the Governor of the RBZ, [[Gideon Gono]] announced that the Zimbabwe dollar would be redenominated by removing 10 zeroes, with effect from 1 August 2008. ZWD10billion became 1&nbsp;dollar after the redenomination.<ref name=ah>{{cite news|url=http://news.bbc.co.uk/1/hi/world/africa/7532702.stm|title=Zimbabwe introduces new currency|work=BBC|date=30 July 2008|access-date=2008-07-30|archive-date=2008-10-03|archive-url=https://web.archive.org/web/20081003143001/http://news.bbc.co.uk/1/hi/world/africa/7532702.stm|url-status=live}}</ref>

More banknotes were issued since Gono vowed to continue printing money: $10,000 and $20,000 (29 September); $50,000 (13 October); $100,000, $500,000 and $1&nbsp;million (3 November); $10&nbsp;million (2 December); $50&nbsp;million and $100&nbsp;million (4 December); $200&nbsp;million (9 December); $500&nbsp;million (11 December); $10&nbsp;billion (19 December); $1&nbsp;trillion (17 January 2009).

On February 2, 2009, a final denomination was implemented, cutting 12 zeroes, before the Zimbabwe dollar was officially abandoned on April 12, 2009. Pending economic recovery, Zimbabwe relied on foreign currency rather than introducing a new currency.<ref>{{cite web|url=https://www.oanda.com/currency/iso-currency-codes/ZWD|title=Zimbabwe Dollar|publisher=OANDA|access-date=2017-04-09|archive-date=2017-04-10|archive-url=https://web.archive.org/web/20170410213827/https://www.oanda.com/currency/iso-currency-codes/ZWD|url-status=live}}</ref>

=== Dollarization: 2009–present ===
In February 2009, the newly installed national unity government (which included the opposition to Mugabe<ref name =Economist072016>{{Cite news|url=https://www.economist.com/news/middle-east-and-africa/21701779-imf-ready-throw-mugabe-regime-lifeline-bad-idea-bailing-out|title=Bailing out bandits|date=2016-07-09|newspaper=The Economist|issue=8997|volume=420|pages=43–44|issn=0013-0613|access-date=2016-07-08|archive-date=2020-11-15|archive-url=https://web.archive.org/web/20201115035824/https://www.economist.com/middle-east-and-africa/2016/07/09/bailing-out-bandits|url-status=live}}</ref>) allowed foreign currency transactions throughout the economy as a measure to stimulate the economy and end inflation.  The Zimbabwean dollar quickly lost all credibility, and by April 2009, the Zimbabwean dollar was suspended entirely, to be replaced by the US dollar in government transactions.  In 2014 there were eight legal currencies – US dollar, [[South African rand]], [[Botswana pula]], British [[pound sterling]], [[Australian dollar]], [[Renminbi|Chinese yuan]], [[Indian rupee]] and [[Japanese yen]].<ref name = BBCHungwe>Hungwe, Brian (6 February 2014) [https://www.bbc.co.uk/news/world-africa-26034078 Zimbabwe's multi-currency confusion] {{Webarchive|url=https://web.archive.org/web/20180816143608/https://www.bbc.co.uk/news/world-africa-26034078 |date=2018-08-16 }} BBC News Africa, retrieved 6 February 2014</ref>

Dollarization reversed inflation, permitting the banking system to stabilize and the economy to resume slow growth after 2009.  Dollarization also had other consequences, including:

* Reduced taxation and financial transparency, as people continued to keep their money out of the formal banking system.
* Extremely high real interest rates due to lack of capital.
* Government forced into a "pay as you go" system, unable to spend more than it takes in.
* Deficits of coinage for everyday transactions, leading to the adoption of South African rand coins, sweets, airtime for mobile phones or even condoms for small change.<ref name = BBCHungwe/>
* Counterfeiting currencies with which Zimbabweans are not familiar.<ref name = BBCHungwe/>
* 10% growth of the economy a year up to 2012<ref name="WDI"/><ref name =Economist072016/>

In January, 2013 Finance Minister Tendai Biti announced that Zimbabwe's national public account held just $217.<ref>{{cite news|url=https://www.bbc.co.uk/news/world-africa-21257765|title=Zimbabwe 'had $217 in account'|work=BBC News|date=31 August 2018|access-date=31 August 2018|archive-date=21 September 2018|archive-url=https://web.archive.org/web/20180921130536/https://www.bbc.co.uk/news/world-africa-21257765|url-status=live}}</ref> The election budget for the July 2013 presidential election was $104 million and government budget for 2013 was $3.09 billion at a projected economic growth of 5 per cent.<ref>[http://www.aljazeera.com/news/africa/2013/01/2013130134525141101.html] {{Webarchive|url=https://web.archive.org/web/20130131194653/http://www.aljazeera.com/news/africa/2013/01/2013130134525141101.html|date=2013-01-31}} Zimbabwe's bank balance stands at $217</ref> [[The Economist]] described the 2013 election as "rigged" and how, after regaining full control of the government, the Mugabe government doubled the civil service and embarked on "...misrule and dazzling corruption."<ref name =Economist072016/>

In August 2014, Zimbabwe began selling treasury bills and bonds to pay public sector salaries that have been delayed as GDP growth weakens while the economy experiences deflation. US$2 million was sold in July through private placements of Six-month Treasury bills at an interest rate of 9.5%. According to IMF data, GDP growth was forecast to be 3.1% by the end of 2014, a major decline from an average rate of 10% between 2009 and 2012, while government data showed that consumer prices declined for five consecutive months by the end of June.<ref>[https://archive.today/20140813113732/http://www.businessweek.com/news/2014-08-07/mugabe-paying-wages-using-debt-as-zimbabwe-economy-slows]  Mugabe Paying Wages Using Debt as Zimbabwe Economy Slows</ref> The Reserve Bank continued to issue large values of treasury bills to support the government's over-budget spending. This added to the money supply and in effect devalued all bank balances, despite them being US Dollar denominated.<ref>{{Cite web|url=http://www.rollingalpha.com/2017/09/11/zimbabwe-hyperinflation-2-0-us-dollar/|title=ZIMBABWE HYPERINFLATION 2.0: THE US DOLLAR VERSION|date=2017-09-11|website=Rolling Alpha|language=en-US|access-date=2020-10-15|archive-date=2020-09-20|archive-url=https://web.archive.org/web/20200920163553/http://www.rollingalpha.com/2017/09/11/zimbabwe-hyperinflation-2-0-us-dollar/|url-status=live}}</ref>

In November 2016 a pseudo-currency was issued in the form of [[Zimbabwean bond notes|Bond Notes]] despite widespread protests against them. In February 2019, [[John Mangudya]], through a monetary policy presentation formally introduced a new currency, the [[RTGS Dollar|RTGS dollar]] which consists of electronic balances in banks and mobile wallets, [[Zimbabwean bond notes|bond notes]] and [[Zimbabwean bond coins|bond coins]].<ref>{{Cite web|url=https://www.thezimbabwemail.com/banking/rbz-introduces-rtgs-dollars/|title=RBZ introduces "RTGS Dollars"|author=Staff Reporter|date=2019-02-20|website=The Zimbabwe Mail|language=en-US|access-date=2019-05-20|archive-date=2019-05-06|archive-url=https://web.archive.org/web/20190506102845/https://www.thezimbabwemail.com/banking/rbz-introduces-rtgs-dollars/|url-status=live}}</ref> This completed the conversion of all US Dollar denominated bank balances to a devalued Zimbabwean currency at a rate of 1:1.

In June 2019 the use of foreign currencies in local transactions was prohibited as part of the prospective plan for a new national currency <ref name="Banned-foreign-currency">{{Cite news |title=Why Zimbabwe has banned foreign currencies |date=26 June 2019 |newspaper=BBC News |url=https://www.bbc.com/news/world-africa-48757080 |access-date=15 October 2020 |archive-date=27 June 2019 |archive-url=https://web.archive.org/web/20190627185343/https://www.bbc.com/news/world-africa-48757080 |url-status=live }}</ref> and thus ended the dollarization period. There was still low volume trade in US Dollars, particularly in the informal sector and using in-shop bureau de change. In March 2020, blaming the challenges of dealing with COVID-19, the government allowed formal transactions in US Dollars once more.<ref>{{Cite news|title=Virus fears prompt Zimbabwe to let citizens pay in US dollars|date=27 March 2020|newspaper=Al Jazeera|url=https://www.aljazeera.com/economy/2020/3/27/virus-fears-prompt-zimbabwe-to-let-citizens-pay-in-us-dollars|access-date=15 October 2020|archive-date=13 October 2020|archive-url=https://web.archive.org/web/20201013152206/https://www.aljazeera.com/economy/2020/3/27/virus-fears-prompt-zimbabwe-to-let-citizens-pay-in-us-dollars|url-status=live}}</ref> Zimbabwe once more extended its multi-currency system from 2025 until 31 December 2030 in October 2023 as a result of declining trust in the Zimbabwean dollar, which also declined by more than 80% in 2023.<ref>{{Cite news |date=2023-10-27 |title=Zimbabwe extends multi-currency system to 2030 |language=en |work=Reuters |url=https://www.reuters.com/markets/currencies/zimbabwe-extends-multi-currency-system-2030-2023-10-27/ |access-date=2023-10-30}}</ref>

=== Government of National Unity: 2009–2013 ===
In response to the negative long-term economic situation the three parliamentary parties agreed on a Government of National Unity. Despite serious internal differences this government made some important decisions that improved the general economic situation, first of all the suspension of the national currency, the Zimbabwean Dollar, in April 2009. That stopped hyperinflation and made normal forms of business possible again, by using foreign currency such as the [[United States dollar|US American Dollar]], the [[South African Rand]], the EUs [[Euro]] or the [[Botswana Pula]]. The former finance minister [[Tendai Biti]] ([[Movement for Democratic Change – Tsvangirai|MDC-T]]) tried to hold a disciplined budget. In 2009 Zimbabwe recorded a period of economic growth for the first time in a decade.<ref name="CIA2010">[https://www.herald.co.zw/zim-has-worlds-second-largest-informal-economy-imf/ "ZIM has world's second largest informal economy: IMF" ''The Herald''] {{Webarchive|url=https://web.archive.org/web/20220226214656/https://www.herald.co.zw/latest-wishing-for-a-dry-spell-rains-are-an-unwelcome-visitor-in-some-sections-of-tsholotsho/attachment/2/|date=2022-02-26}}</ref>

=== Post-Government of National Unity: 2013–2020 ===
Following ZANU-PF's landslide electoral victory in the [[Zimbabwean general election, 2013|2013 general elections]], [[Patrick Chinamasa]] was appointed finance minister.  Policies encouraging the [[Indigenisation and Economic Empowerment Act|indigenisation]] of the economy were fast tracked and laws requiring that 51% or more of non-black Zimbabwean owned companies had to be handed over to black Zimbabweans were implemented.  This has been credited with creating further uncertainty in the economy and negatively impacting investment climate in the country. Although legislation dealing with the indigenisation of the Zimbabwean economy has been in development since 2007 and actively initiated by ZANU-PF in 2010 the policy has continued to be accused of being unclear and a form of "[[racketeering]] by regulation."<ref name="ZimIndpendentIndig">{{cite web|url=http://www.zimbabwesituation.com/news/zimsit_indigenisation-now-a-mess/|title=Indigenisation now a mess|date=23 May 2014|publisher=[[The Zimbabwe Independent]]|access-date=25 May 2014|archive-date=25 May 2014|archive-url=https://web.archive.org/web/20140525200441/http://www.zimbabwesituation.com/news/zimsit_indigenisation-now-a-mess/|url-status=live}}</ref>  The government doubled the civil service and embarked on what the Economist described as "...misrule and dazzling corruption."<ref name="Economist072016" />

In April 2014, Chinamasa admitted that the country was heavily in debt and that the country needed to better attract foreign direct investment.<ref name="HeraldDebt">{{cite news|url=http://www.herald.co.zw/debt-overhang-deters-funding-as-govt-plots-strategies-to-attract-investors/|title=Debt overhang deters funding . . . as Govt plots strategies to attract investors|date=24 April 2014|newspaper=[[The Herald (Zimbabwe)|The Herald]]|access-date=21 May 2014|archive-date=23 November 2020|archive-url=https://web.archive.org/web/20201123162342/https://www.herald.co.zw/debt-overhang-deters-funding-as-govt-plots-strategies-to-attract-investors/|url-status=live}}</ref>  Officially Zimbabwe's debt is $7 billion, or over 200% of the country's GDP.  However, this figure is disputed, with figures as high as $11 billion being quoted, once debts to other African countries and China are included.<ref name="Disempowerment">{{cite web|url=http://www.zimbabwesituation.com/news/zimsit_disempowerment-of-blacks-by-blacks-part1/|title=Disempowerment of blacks by blacks (Part1)|date=13 May 2014|publisher=New Zimbabwe|access-date=21 May 2014|author=Yamamoto, Ken|archive-date=30 November 2020|archive-url=https://web.archive.org/web/20201130020243/https://www.zimbabwesituation.com/news/zimsit_disempowerment-of-blacks-by-blacks-part1/|url-status=live}}</ref>  As of May 2014, it has been reported that Zimbabwe's economy was in decline following the period of relative economic stability during the Government of National Unity. It is estimated that Zimbabwe's manufacturing sector requires an investment of roughly US$8 billion for working capital and equipment upgrades.<ref name="2014collapse">{{cite web|url=http://www.zimbabwesituation.com/news/zimsit_zimbabwes-economic-collapse-alarms-business/|title=Zimbabwe's economic collapse alarms business|date=20 May 2014|publisher=Daily News Live|access-date=21 May 2014|author=Majaka, Ndakaziva|archive-date=21 May 2014|archive-url=https://web.archive.org/web/20140521181153/http://www.zimbabwesituation.com/news/zimsit_zimbabwes-economic-collapse-alarms-business/|url-status=live}}</ref>

In 2016 [[Tendai Biti]], an opposition politician estimated the government was running a deficit of up to 12% of GDP<ref name="Economist072016" /> and Zimbabwe began experiencing a significant shortage of US dollars partly due to a consistent [[Balance of trade|trade deficit]].<ref name=":0">{{Cite web|url=http://www.iol.co.za/business/news/zimbabwe-threatens-to-cancel-licenses-2031916|title=Zimbabwe threatens to cancel licenses {{!}} IOL|website=iol.co.za|access-date=2016-06-08|archive-date=2016-10-14|archive-url=https://web.archive.org/web/20161014151143/http://www.iol.co.za/business/news/zimbabwe-threatens-to-cancel-licenses-2031916|url-status=live}}</ref> This prompted the Zimbabwean government to limit cash withdrawals from banks and change [[Foreign exchange controls|exchange-control]] regulations in order to try to promote exports and reduce the currency shortage.<ref name=":0" /><ref>{{Cite web|url=https://www.theatlantic.com/international/archive/2016/05/zimbabwe-money/481518/|title=Zimbabwe's Own U.S. Dollar Bills|last=Vasilogambros|first=Matt|website=The Atlantic|date=6 May 2016|language=en-US|access-date=2016-06-08|archive-date=2016-06-17|archive-url=https://web.archive.org/web/20160617005559/http://www.theatlantic.com/international/archive/2016/05/zimbabwe-money/481518/|url-status=live}}</ref> In June and July 2016, after Government employees had not been paid for weeks, police had set up road blocks to coerce money out of tourists and there were protests throughout Zimbabwe,<ref>{{cite news|url=https://www.thetimes.com/world/us-world/article/from-our-correspondent-mugabenomics-means-shopkeepers-have-to-cope-with-seven-currencies-88ctd2gvj|title=Shopkeepers struggle with 'multicurrency' Mugabenomics|last=Raath|first=Jan|date=2016-06-27|newspaper=[[The Times]]|access-date=2016-07-25|url-access=subscription|archive-date=2016-08-07|archive-url=https://web.archive.org/web/20160807175000/http://www.thetimes.co.uk/article/from-our-correspondent-mugabenomics-means-shopkeepers-have-to-cope-with-seven-currencies-88ctd2gvj|url-status=live}}</ref><ref>{{cite news|url=https://www.thetimes.com/world/article/mugabe-at-war-with-militias-that-keep-him-in-power-kbldr7v8l|title=Mugabe at war with militias that keep him in power|last1=Raath|first1=Jan|last2=Graham|first2=Stuart|date=2016-07-25|newspaper=[[The Times]]|access-date=2016-07-25|url-access=subscription|archive-date=2020-06-29|archive-url=https://web.archive.org/web/20200629200450/https://www.thetimes.co.uk/edition/world/mugabe-at-war-with-militias-that-keep-him-in-power-kbldr7v8l|url-status=live}}</ref>  [[Patrick Chinamasa]], the finance minister, toured Europe in an effort to raise investment capital and loans, admitting "Right now we have nothing."<ref name="Economist072016" /> In August 2016 the government announced that it would be laying off 25,000 civil servants (8% of the country's 298,000 civil servants), cut the number of embassies and diplomatic expenses and cut ministerial expenses in an attempt to save $4 billion in annual wages and secure help from the World Bank and the IMF.<ref>{{cite news|url=https://www.thetimes.com/uk/politics/article/mugabe-fires-25-000-state-workers-tq8lcf0qz|title=Mugabe fires 25,000 state workers|last=Raath|first=Jan|date=2016-09-09|newspaper=[[The Times]]|access-date=2016-09-09|archive-date=2018-11-16|archive-url=https://web.archive.org/web/20181116082306/https://www.thetimes.co.uk/edition/world/mugabe-fires-25-000-state-workers-tq8lcf0qz|url-status=live}}</ref>

At the same  time, the government sought to improve women's access to microfinance via the [[Zimbabwe Women Microfinance Bank]] Limited, which began operations 29 May 2018.<ref name=":4">{{Cite news|url=http://allafrica.com/stories/201806070232.html|title=Zimbabwe: Women's Bank Finally Commences Operations|date=2018-06-07|work=263Chat (Harare)|access-date=2018-06-08|archive-date=2018-06-09|archive-url=https://web.archive.org/web/20180609144538/http://allafrica.com/stories/201806070232.html|url-status=live}}</ref> The Bank operates under the supervision of the [[Ministry of Women's Affairs, Gender and Community Development (Zimbabwe)|Ministry of Women's Affairs, Gender and Community Development]].<ref name=":4" /><ref>{{Cite web|url=http://www.zbc.co.zw/zim-womens-microfinance-bank-opens/|title=Zim Women's Microfinance Bank opens {{!}} ZBC News Online|website=zbc.co.zw|language=en-US|access-date=2018-06-08|archive-date=2018-06-12|archive-url=https://web.archive.org/web/20180612144359/http://www.zbc.co.zw/zim-womens-microfinance-bank-opens/|url-status=live}}</ref>

==== Re-adoption of the Zimbabwe Dollar ====
In mid-July 2019 inflation had increased to 175% following the adoption of a new Zimbabwe dollar and banning the use of foreign currency thereby sparking fresh concerns that the country was entering a new period of hyperinflation.<ref>{{Cite web|url=https://www.businesslive.co.za/bd/world/africa/2019-07-15-zimbabwes-inflation-doubles-up-to-175/|title=Zimbabwe's inflation doubles up to 175%|last=Samaita|first=Kevin|date=15 July 2019|website=BusinessLIVE|language=en-ZA|access-date=2019-07-16|archive-date=2019-07-16|archive-url=https://web.archive.org/web/20190716095322/https://www.businesslive.co.za/bd/world/africa/2019-07-15-zimbabwes-inflation-doubles-up-to-175/|url-status=live}}</ref><ref>{{Cite web|url=https://www.aljazeera.com/ajimpact/inflation-figures-zimbabwe-raise-spectre-troubled-times-190715175224038.html|title=Could new figures forecast hyperinflation for Zimbabwe?|last=Muronzi|first=Chris|date=16 July 2019|website=aljazeera.com|access-date=2019-07-16|archive-date=2019-07-16|archive-url=https://web.archive.org/web/20190716095317/https://www.aljazeera.com/ajimpact/inflation-figures-zimbabwe-raise-spectre-troubled-times-190715175224038.html|url-status=live}}</ref>  The Zimbabwean government stopped releasing inflation data in August 2019.<ref name=":6">{{Cite web|url=https://www.aljazeera.com/ajimpact/conceal-burn-zimbabwe-withholding-official-inflation-data-190801203007842.html|title=Conceal the burn: Zimbabwe is withholding official inflation data|website=aljazeera.com|access-date=2019-09-22|archive-date=2020-07-31|archive-url=https://web.archive.org/web/20200731014503/https://www.aljazeera.com/ajimpact/conceal-burn-zimbabwe-withholding-official-inflation-data-190801203007842.html|url-status=live}}</ref>  The year-on-year inflation rate was 521% in December 2019, but Zimbabwe central bank officials said in February 2020 that they hoped to reduce the figure to 50% by the end of December 2020.<ref>{{Cite news|author=Godfrey Marawanyika|url=https://www.bloomberg.com/news/articles/2020-02-17/zimbabwe-sees-annual-inflation-dropping-tenfold-in-12-months|publisher=Bloomberg|date=February 17, 2020|title=Zimbabwe Sees Annual Inflation Dropping Tenfold in 12 Months|access-date=2020-03-15|archive-date=2020-03-18|archive-url=https://web.archive.org/web/20200318074409/https://www.bloomberg.com/news/articles/2020-02-17/zimbabwe-sees-annual-inflation-dropping-tenfold-in-12-months|url-status=live}}</ref>