With the introduction of four more currencies in Zimbabwe, there are concerns it will just cause confusion rather than solve the country's cash shortage, writes the BBC's Brian Hungwe.
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This article is about how Zimbabwe has recently adopted four more foreign currencies as a nationally accepted form of payment, adding to the four already in use. Zimbabwe does not have its own national currency; it accepts other currencies as legal tender. Some people do not welcome this change, because it means that they must keep an eye on more currencies now in order to make sure that they are not being swindled by lower exchange rates. Others worry that counterfeit notes may become more commonplace. Zimbabwe formerly had its own currency, but it was victim to severe hyperinflation that led to billion-dollar and even trillion-dollar notes.
This article helped me to understand Africa because I am currently researching the country of Tanzania and its history. Tanzania has a stable and growing economy due to its policy of privatization, where government industries are sold to private companies. Zimbabwe's economy is struggling, so it must use other currencies to keep afloat.
I am reminded by this article that the economic health of most African countries are not very good.
I think that having eight currencies as legal tender is a very bad and inefficient way to improve the economy. It simply increases the workload of cashiers and banks; they now have to check daily exchange rates. The price of an item today may be radically different tomorrow. One currency could move up, and another could reduce in value. How will one know whether the price of an item should change? Zimbabwe needs to accept a single currency, perhaps the US Dollar, and move towards enacting that currency as the "real" national currency.