What: Announced to adopt Chinese currency Yuan
When: 21 December 2015
Zimbabwe’s Finance Minister Patrick Chinamasa on 21 December 2015 announced that the country has planned to adopt the Chinese Yuan as legal tender. It will be done in return for debt cancellation worth 40 million dollars in the second week of December 2015.
As per the decision, Yuan will be a function of trade between China and Zimbabwe and acceptability with customers in Zimbabwe.
China has become the largest investor in Zimbabwe, which has been shunned by the West over its human rights record and is struggling to emerge from a deep 1999-2008 recession that forced the government to ditch its own currency in 2009.
In the last five years, Zimbabwe has received more than one billion dollars in low interest loans from China, which is Harare’s second largest trading partner after South Africa. China has been accused of exploiting the continent’s vast mineral and energy resources at the expense of local people.
Earlier also to stabilize its hyperinflation crisis, the nations has adopted foreign currencies, mostly the US Dollar and South African Rand, as legal tender. This adoption helped the country to boost its economy.