Coronavirus: Zimbabwe reintroduces foreign currencies use

Zimbabwe has reintroduced the use of foreign currencies for domestic transactions, which it had banned last June, in the wake of the coronavirus outbreak.

The move announced on Thursday is expected help the country to access private foreign exchange savings as it gears up for the battle against the virus.

Zimbabwe had used a number of foreign currencies since hyper-inflation which has forced the government to ditch the Zimbabwe dollar in 2009. Last year's ban on foreign currency was intended to restore normalcy to the economy.

The country’s central bank has also reduced its main lending rate to 25% from 35% and set a fixed exchange rate as part of measures to support the economy against the pandemic.

John Mangudya, the central bank’s governor, said he expected banks to cut lending rates to customers.

Officially, Zimbabwe has so far recorded five cases of coronavirus, including one death.

The country has a long-standing health sector crisis and doctors have only recently returned to work after a protracted strike over low salaries and poor working conditions.

On Wednesday, junior doctors stopped work citing a shortage of protective equipment which they said put them at risk of contracting the virus.