HARARE – Air Zimbabwe says foreign passport holders will now pay in foreign currency on both its domestic and international flights, in the latest expression of lack of confidence in the Zimbabwe dollar.
In a notice to customers on Thursday, the airline said: “Air Zimbabwe can only sell tickets to Zimbabwean residents in local currency, however willing residents can pay for their tickets in foreign currency.”
With immediate effect, the airline said, holders of foreign passports, embassies, international organisations, NGOs and passengers whose flights originate from outside Zimbabwe will be required to buy their tickets in foreign currency.
In June, Zimbabwe banned the use of foreign currencies in domestic transactions after renaming its RTGS currency to the Zimbabwe dollar, and making it the sole legal tender.
The ban on domestic use of foreign currencies, ending a decade of dollarisation, caught the market by surprise and the Zimbabwe dollar began a slide which has hit importing companies and stoked inflation which was 380 percent in September.
Authorities have made several exemptions since June in a bid to boost the flow of United States dollars in the economy.
Fuel companies, chrome miners, embassies and international organisations were allowed to use foreign currencies for local transactions in July in the hope it would unlock US$1.3 billion held in banks by exporting companies, individuals and international organisations.
The Reserve Bank of Zimbabwe subsequently eased the rules for hotels and some fast food outlets in moves that have emboldened critics who argue that June’s currency reforms were hurried.
The policy U-turns continue to undermine the Zimbabwe dollar, which was trading for at 1:15.67 to the United States dollar on Thursday.
