The Fluidity of Money in Zimbabwe and the Survival of Urban Informal Traders Since 2009
DOI:
https://doi.org/10.25159/2663-6549/11640Keywords:
Informality, informal traders, informal sector, money, currency, HarareAbstract
The last decade in Zimbabwe has witnessed the unfolding of a myriad of economic episodes characterised by different forms of money. The year 2009 saw Zimbabwe abolishing its Zimbabwean dollar at the zenith of its world-record hyperinflation. This was followed by the adoption of the multicurrency regime, which was, however, dominated by the United States Dollar (US Dollar). The multicurrency adoption managed to extinguish inflation, and this also saw the flourishing of the informal sector in response to improved disposable income for the people. Subsequent to that, there have been many changes in the monetary landscape, such as the shortages of US dollars due to liquidity problems; a significant reduction in the circulation of US dollar banknotes; the collapse of the mobile money platforms in response to the liquidity challenges; the emergence of a multi-layered pricing system; as well as the recently promulgated SI 142 that saw the adoption of the mono-currency punctuated by the return of the Zimbabwean dollar. Urban informal traders heavily rely on the exchange of money in its different forms; hence, any changes on the monetary side tend to affect them. The ability of informal traders to restock is negatively affected by an unstable environment. This study, therefore, seeks to document how informal traders have been responding to the many changes outlined in this overview that has characterised the Zimbabwean economic environment.
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Accepted 2023-05-05
Published 2023-07-21
