STUDY IN CHINA

Thursday, December 24, 2015

Zimbabwe to adopt Chinese yuan as legal tender after China cancels debts

Zimbabwe to adopt Chinese yuan as legal tender after China cancels debts
Zimbabweans will soon be able to shop in yuan after their government announced it will adopt the Chinese currency following Beijing's cancellation of $40 million in debt.

China has become the largest investor in Zimbabwe, which has been shunned by the West over its human rights record and is struggling to emerge from a deep recession which began in 1999.

"They [China] said they are cancelling our debts that are maturing this year and we are in the process of finalising the debt instruments and calculating the debts,” minister Patrick Chinamasa said in a statement.

Zimbabwe abandoned its own dollar in 2009 after hyperinflation tore through the country, rendering the currency unusable. The country has since made do with a patchwork of foreign currencies including the US Dollar, Euro and South African Rand.

According to The Guardian, the Chinese yuan had already been added to the basket of foreign currencies used since 2009, but until now its use had not been approved for public transactions.

No comments:

Post a Comment