A struggling economy is nothing new to the citizens of Zimbabwe, who have suffered from a stormy economy for many years. The decline began in 1980 after the hands of the government switched from the Rhodesian to the Zimbabwean. As a result of corrupt administration, poor governing, and the use of government funds for personal gain, the economy nose-dived at a steady rate.
In 2009, after the Zim, the Zimbabwe dollar, was subjected to constant inflation, the Zimbabwe government decided to abandon their original currency in favor of U.S. currency. There are only a few $1 and $2 U.S. bills circulating around Zimbabwe, as there simply isn’t enough of the funds available. As soon as the U.S. dollar idea was embraced, immediate and miraculous changes began to occur. First of all, inflation stopped in its tracks. What was even more astounding was the fact that the U.S. funds boosted growth. This lead to an expectation that the economy would soon stabilize.
Despite the fact that Zimbabweans noticed such major and immediate improvements upon switching to U.S. funds, the money has run out and officials don’t have access to anymore. Instead of handing out American coins when customers were due change like they did when coins were still available, shopkeepers have been handing out gum, sweets and pens.
Will Zimbabwe determine a way to gain unlimited access to U.S. funds since the Zim has lost its value? Some drastic and permanent changes need to be made if the country is going to make a full recovery from this economic decline. Although no definite plans have been made, it is quite possible that Zimbabwean officials will figure out a way to access the U.S. funds that it desperately needs in order to provide long-term stability to its people.