The history of Zimbabwe's currency is closely linked to the country's history as a whole. Zimbabwe was first settled by British explorers in 1890; Britain named the area an official colony of the British Empire in 1923. At that time, the area was known as Southern Rhodesia.
According to National Geographic, Zimbabwe used the common currency of the British Empire, the pound, during its time as a British colony. In 1965, the minority Caucasian population in the country declared its independence from British rule, taking the name Rhodesia, and abandoned the pound. At that time, the currency was changed to the Rhodesian dollar.
Even though Rhodesia declared its independence from the British Empire, the new government encountered many problems. In 1980 the minority government was overthrown, and the country officially became Zimbabwe. At this time, the currency became known as the Zimbabwe dollar, commonly denoted on prices as ZWD or Z$.
The largest Zimbabwe banknote in common circulated is Z$1,000; the highest note ever circulated was Z$100 billion.
At the time it was established in 1980, the Zimbabwe dollar held roughly the same worth as a pound sterling, about $1.49 in American dollars. With constant economic hardship and inflation racking the country, however, the Zimbabwe dollar has depreciated significantly. According to the Online Currency Trading experts, the Zimbabwe dollar in August 2005 had devalued so that Z$17,694.15 were need to equal a single United States dollar.
Foreign currency is rarely found in Zimbabwe, but vendors actually prefer receiving foreign currency, especially United States dollars. iExplore, an online travel agency and assistance guide, states that many prices for goods in Zimbabwe are expressed in United States dollars.
According to the State Department, Zimbabwe's society runs almost exclusively on cash; hard currency is required to enter many public attractions, including tourist attraction Victoria Falls. The U.S. dollar, South African rand and Botswanan pula are the main way to pay for goods in Zimbabwe.
The State Department advises that traveler's checks are generally not accepted, though some hotels or restaurants may accept them. Such public establishments may also feature ATMs to make getting cash easier.
Visitors and tourists in Zimbabwe can shop without paying duty on certain items, with some limitations.
Some items valued at $250 U.S. or greater are duty-free so long as a person uses this exception only once in a 30-day period. These items include personal consumption purchases, including tobacco and up to 5 liters of alcohol.
This exemption does not apply to items such as narcotics, weapons, toy firearms, indecent materials or honey.
In terms of bringing currency in and out of Zimbabwe, the State Department advises that all travelers are required to declare all of the money they bring into or out of Zimbabwe. There is no limit to the amount of currency travelers can bring in; travelers are only allowed to leave with $5,000 U.S. or less.
