The Republic of Zimbabwe (formerly Rhodesia) comes into being, with Canaan Banana as the country's first President. The Zimbabwean dollar replaces the Rhodesian dollar as the official currency.

Zimbabwe, officially the Republic of Zimbabwe, is a landlocked country in Southeast Africa, between the Zambezi and Limpopo Rivers, bordered by South Africa to the south, Botswana to the southwest, Zambia to the north, and Mozambique to the east. The capital and largest city is Harare, and the second largest is Bulawayo.

Rhodesia, officially the Republic of Rhodesia from 1970, was an unrecognised state in Southern Africa that existed from 1965 to 1979. Rhodesia served as the de facto successor state to the British colony of Southern Rhodesia following a unilateral declaration of independence issued by the ruling white-minority government. Throughout this fourteen-year period, Rhodesia faced internal conflict and political unrest. Following the Lancaster House Agreement in 1979, the territory returned to British political control and then subsequently gained internationally recognised independence as Zimbabwe in 1980.

Canaan Sodindo Banana was a Zimbabwean Methodist minister, theologian, and politician who served as the first President of Zimbabwe from 1980 to 1987. He was Zimbabwe's first head of state, a ceremonial president, after the Lancaster House Agreement that led to the country's independence. In 1987, he stepped down as president and was succeeded by Prime Minister Robert Mugabe, who became the country's executive president. In 1997, Banana was accused of being a homosexual, and after a highly publicised trial, was convicted of 11 counts of sodomy and "unnatural acts", serving six months in prison.

The Zimbabwean dollar was the name of four official currencies of Zimbabwe from 1980 to 12 April 2009. During this time, it was subject to periods of extreme inflation, followed by a period of hyperinflation.