World News for Students of English

31-01-2023 07:00

Following the collapse of the Zimbabwean dollar in 2009, Zimbabwe became a dual currency economy.

The government reintroduced Zimbabwean dollars in 2019; however, the local people generally rely on the US dollar for daily transactions. With US currency in short supply, well-worn bills are popular. Some people buy old bills at a discount; shops would usually reject the bills. The people fix the notes and sell them for a profit on the black market.

Zimbabwean banks have mandates to accept soiled money in exchange for crisp notes. The government bank has asked citizens to make exchanges; however, many people mistrust the financial system because they lost their savings due to hyperinflation. They prefer black market traders.

Difficult words: dual (consisting of two parts), crisp (clear and hard), hyperinflation (out-of-control general price increases in an economy).

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