Ncube told reporters that the Harare authorities plan to introduce legislation making the United States dollar legal for the next five years. 

"The market's lack of confidence in multi-currency is causing us problems, but I'm here to assure you it will remain in place for the next five years," Ncube said.

Zimbabwe adopted a multi-currency payment system in February 2009 following the free-fall of the local dollar.

The system has entailed the use of a basket of currencies – including the US dollar, British pound sterling, South African rand and Botswana pula – for domestic payments but President Emmerson Mnangagwa’s government reintroduced the local currency in 2019. 

A series of poor policies has, however, seen the local dollar rapidly losing value since late 2021, resulting in an unprecedented rise in prices of basic commodities.

According to Ncube, the US dollar would now become legal tender to boost confidence.

JN/APA