Economics
Zimbabwe Restores Dollar Peg as Currency Crashes
- African nation banned local use of the greenback in June
- Moves demonstrates distrust in Zimbabwe dollar, economist says
Photographer: Jekesai Njikizana/AFP via Getty Images
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Zimbabwe’s government, which banned use of the dollar nine months ago, has restored the peg its currency had to the greenback due to a scarcity of foreign exchange.
The southern African nation faces shortages of fuel, power and food because it can’t afford to pay for the imports. The worst drought in 40 years means the government needs to import 1 million tons of corn to keep its people from starving.