The southern African nation abandoned its own dollar in 2009 after hyperinflation - which peaked at around 500 billion per cent - rendered it unusable.
Zimbabwe has announced that it will make the Chinese yuan legal tender in the country after Beijing said that it will cancel over R600 million of the country's debt. The country went to using mainly US dollars, South African rands, and Botswana pula.
At the peak of the crisis, the local currency became nearly worthless, with 35 quadrillion Zimbabwean dollars equaling one USA dollar.
"They (China) said they are cancelling our debts that are maturing this year and we are in the process of finalising the debt instruments and calculating the debts", Minister Patrick Chinamasa said in a statement.
In the last five years, Zimbabwe has received more than $1 billion in low interest loans from China, which is Harare's second largest trading partner after South Africa
Use of the yuan "will be a function of trade between China and Zimbabwe and acceptability with customers in Zimbabwe", said Chinamasa.
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