WATCH: Mthuli Ncube Reveals Why The ZIM Dollar Was Reintroduced

Finance Minister, Professor Mthuli Ncube has said that the Zimbabwean dollar was reintroduced to cushion workers who were now failing to access basic commodities as shops were charging in foreign currencies.

Ncube said that he met with an Association of teachers which lamented over their inability to buy basic commodities from shops and medical facilities which were pricing their goods and services mainly in US dollars. Most workers in Zimbabwe are paid in the local quasicurrency, the Real Time Gross Settlement (RTGS).

The RTGS dollar has been losing value against foreign currencies since its introduction in February. Consequently, inflation has been rising at an unparalleled rate. This, in turn, eroded the salaries of workers.