Editing Economy of Zimbabwe (section)

=== 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>