Zimbabwe has announced that it will make the Chinese yuan
legal tender after Beijing confirmed it would cancel $40m in debts.
legal tender after Beijing confirmed it would cancel $40m in debts.
“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.
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.
Chinamasa also announced that Zimbabwe will officially make
the Chinese yuan legal tender as it seeks to increase trade with Beijing.
the Chinese yuan legal tender as it seeks to increase trade with Beijing.
Zimbabwe abandoned its own dollar in 2009 after
hyperinflation, which had peaked at around 500bn%, rendered it unusable.
hyperinflation, which had peaked at around 500bn%, rendered it unusable.
It then started using a slew of foreign currencies,
including the US dollar and the South African rand.
including the US dollar and the South African rand.
The yuan was later added to the basket of the foreign
currencies, but its use had not been approved yet for public transactions in
the market dominated by the greenback.
currencies, but its use had not been approved yet for public transactions in
the market dominated by the greenback.
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