Re: Zimbabwe government trying to push for new Zimbabwe Dollar - Surprised?
So basically all of us know what happened to the Zimbabwean economy at around 2007, where its hyperinflationary crisis peaked.
After that period, the government seemed to take a step back along with the central bank and say that for the interests of the economy, we're just going to not issue our own currency for the time being - but rather use USD, SA rands, CNY etc. as de facto currencies.
And then, the launched bond notes, which were supposed to be notes that have a pegged value to USD at 1:1. When I initially saw that I knew it was up to no good, since it was clear what this initiative was supposed to do in terms of being a launchpad for a new national currency.
Since then they've introduced what's called "RTGS dollars" (basically Zimbabwean dollars, except they want to dissociate from the negative connation that it brings), and removed the peg of 1:1 from bond notes (surprising, huh?
)
Inflation has hit 170+% p.a. in recent days with this new currency, which is worrying since it's starting to resemble the 2007 situation all over again.
I'm interested in hearing opinions as to how the population in Zimbabwe can protect themselves given that forex is now banned essentially, and what you think the direction will be for the economy of Zimbabwe for the future.
After that period, the government seemed to take a step back along with the central bank and say that for the interests of the economy, we're just going to not issue our own currency for the time being - but rather use USD, SA rands, CNY etc. as de facto currencies.
And then, the launched bond notes, which were supposed to be notes that have a pegged value to USD at 1:1. When I initially saw that I knew it was up to no good, since it was clear what this initiative was supposed to do in terms of being a launchpad for a new national currency.
Since then they've introduced what's called "RTGS dollars" (basically Zimbabwean dollars, except they want to dissociate from the negative connation that it brings), and removed the peg of 1:1 from bond notes (surprising, huh?
) Inflation has hit 170+% p.a. in recent days with this new currency, which is worrying since it's starting to resemble the 2007 situation all over again.
I'm interested in hearing opinions as to how the population in Zimbabwe can protect themselves given that forex is now banned essentially, and what you think the direction will be for the economy of Zimbabwe for the future.
Yes, pretty much the same hyperinflation effects as last time. Just with digital "printing", instead of a physical one.
Very sad.
Best thing for the population would be to use alternative open digital currencies for daily transactions and assume the current value of RTGS is zero.
Once a hyperinflation cycle starts all trust is broken and its only downhill from there. Might as well scrap the current national currency again and use something that works.