Charity Dhliwayo, the acting governor of the Reserve Bank of Zimbabwe announced that Zimbabwe’s central bank would accept the Chinese yuan and two other Asian currencies as legal tender. Dhliwayo said, “Trade and investment ties between Zimbabwe, China, India, and Japan have grown appreciably”. Zimbabwe had to abandon their currency after their economy became rife with inflation in 2009.
However, an independent economist Chris Mugaga said that the introduction of the Asian currencies would not make a huge difference in Zimbabwe’s struggling economy. Mugaga goes on to say that Zimbabwe is adopting a “Look East Policy” after economic relations with the West has come under strain. Over the past couple decades, Chinese investors have entered into diamond mining, construction and retail sectors in Zimbabwe.