Overnight interest rates for banks have been hiked from 15% to 50%.

The Reserve Bank Of Zimbaabwe has massively hiked interest rates following the announcement of the return of the Zimbabwean dollar.

On Monday, government said only the Zimbabwe dollar could be used for local transactions.

Overnight interest rates for banks have been hiked from 15% to 50%.

It was one of several measures the central bank announced on Monday to support the Zimbabwe dollar, the new currency that has taken most by surprise.

The government of President Emmerson Mnangagwa had previously hinted at a much later date for domestic currency.

For now, there are questions like will this cause more shortages of fuel and bread and imported goods?

Others have grimly noted that outlawing the US dollar meant restive civil servants couldn’t demand it any more as they had been doing with mounting strike threats.