The High Court of Zimbabwe ruled that the controversial one was one conversion of the 2019 constitution. The country went into chaos after the Reserve Bank converted all bank balances across all banks and financial interiors from USD dollars to Zimbabwean RTGS dollars. Many people went to the streets protesting such a policy, but the efforts did not yield a result. The policy continued and the balances got all converted.
Many pensioners and general Zimbabweans lost their savings as the black market exchange rate between the USD and the Zim dollar continued to rise. It seemed that this was the end for many people but recent challenges at the High Court have brought hope to many people as the policy is ruled unconstitutional.
The deteriorating of the Zimbabwean dollar since independence
The Zimbabwean dollar has significantly changed since the country gained independence in 1980. At the time of independence, the Zimbabwean dollar was worth roughly equal to the US dollar. Still, over the years, the currency has experienced hyperinflation, leading to a rapid decline in value.
Several factors contributed to the deterioration of the Zimbabwean dollar. One major factor was the government’s policy of printing more money to finance government expenditures without corresponding increases in the production of goods and services. This led to a rise in the supply of money, but not an equivalent increase in the collection of goods, which caused inflation.
Another factor was political instability and government mismanagement, which led to a lack of investor confidence in the Zimbabwean economy. This lack of confidence led to a decrease in foreign investment and a reduction in the supply of foreign currency, which put further pressure on the Zimbabwean dollar.
Hyperinflation in Zimbabwe peaked in 2008, with the annual inflation rate estimated to be around 500 billion per cent. This led to a situation where the Zimbabwean dollar became almost worthless, and the government was forced to abandon the currency and adopt a multi-currency system, where foreign currencies like the US dollar and South African rand were used for everyday transactions.
In 2019 the Gvt of Zimbabwe caused chaos & severe economic loss to millions of Zimbabweans when it demonitised the US$ & introduced the valueless Zim$.We are pleased to announce that the High Court has declared unconstitutional the appropriation of US$ savings in our own case pic.twitter.com/kIfjqM49cg
— Tendai Biti Law (@BitiLawChambers) February 17, 2023