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Topic: Zimbabwe government trying to push for new Zimbabwe Dollar - Surprised? - page 3. (Read 629 times)

legendary
Activity: 3668
Merit: 6382
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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.

The more troubles a local currency has, the more he government insist that people should use it.
In the past even my country had big inflation. Just the big currencies - USD, (DEM) EUR - were easy to buy. Almost everybody kept a big part of their "wealth" in foreign currencies. At least near the border, I'm sure that this can be achieved there too.
And there's Bitcoin and altcoins, but I don't know if it's easy or not to buy and sell (!) them. And sell is an important factor, because sometimes you just need to use money.


And there's debt. I don't know how big are the bank interest rates, but in the days the real inflation is bigger than the official inflation the interest rates are not too high and it may make more sense to buy something big (house, car, whatever) on debt, and the inflation may work in your favor (especially if the bank's interest rates don't keep up well).
legendary
Activity: 3542
Merit: 1965
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I know for a fact some Zimbabweans use M-Pesa in their country, because I have done some contract work there a while ago for our company. I do not know if BitPesa is allowed there, if you say all foreign exchange services are blocked?

The people will still use the Rand because they can cross the border into South Africa without any restrictions.  Tongue  A lot of them are using digital Bitcoin exchanges that are not situated inside the borders of Zimbabwe to protect some of their wealth.  Roll Eyes

Bitcoin P2P use cannot be stopped, so the government is pissing into the wind with these restrictions.  Grin
sr. member
Activity: 2352
Merit: 245
The restoration of the country's real economy will depend entirely on the effective measures taken for this government. It seems to me that they should have released their national money much earlier. The fact that in Zimbabwe again 170 percent of annual inflation indicates that the economy is developing very badly. It is difficult to advise anything here, I do not know well the situation in this country.
hero member
Activity: 1526
Merit: 596
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?  Roll Eyes)

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.
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