Investor Presentaiton

Introduction & Challenges of the Multicurrency System ■ In February 2009, Zimbabwe adopted the multicurrency system with the objective of stabilising the economy following a period of hyperinflation. ➡ Although the multicurrency system served the country reasonably well at the time, it brought the following challenges: Loss of export competitiveness; De-industrialisation due to cheap imports; Externalisation of foreign currency; Limited foreign currency circulation in the formal market; Price distortions due to multi-tier pricing systems with preference to forex; and ➡ Lack of independent monetary policy due limited monetary policy tools.

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