Zimbabwe Has THREE Currency Options ?

G

goldsilverratio

Professor Mthuli Ncube may explore three options: Either Zimbabwe JOINS the South African RAND UNION; Uses ONLY the U.S. dollar while REMOVING bond notes from circulation, or REINTRODUCES the Zimbabwean dollar. ( Zimbabwe News September 9, 2018 / 6:36 PM )
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With unemployment above 80 percent? Creating ONE JOB for every 12 TOURIST that arrives in Zimbabwe may be the FIRST PLACE to START
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Like Jack Ma co-chair and Alibaba Group executive chairperson pointed out on his recent visit to Africa.
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You are so lucky in Africa? You have Clean Air, Blue Skies, Clean Water and Safe Food to Eat ? ( see further points made by Professor Mthuli Ncube below )
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The Professor said he would explore THREE OPTIONS : either Zimbabwe JOINS the South African RAND UNION; uses ONLY the U.S. dollar while removing bond notes from circulation, or reintroduces the Zimbabwean dollar.
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Ncube however said a LOCAL currency would ONLY be introduced when Zimbabwe HAS ENOUGH foreign reserves and achieves macro-economic STABILITY. Zimbabwe currently has two weeks import cover, according to central bank data.
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“I am very clear that there have to be currency reforms and the current currency approach is not working,” Ncube told the government-owned Sunday Mail.
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Officially, the bond notes are pegged to the dollar at a rate of 1:1, but on the street $1 fetches up to 1.50 in bond notes.
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https://af.reuters.com/article/zimbabweNews/idAFL5N1VV0JS
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https://www.iol.co.za/capetimes/new...s-rangers-hails-africa-as-the-future-16451347
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https://www.iol.co.za/business-repo...notices-what-no-one-else-is-noticing-11391987
 
countries have to bite the bulletin.

re:lesson in history
the German Mark was worthless after World War II. Luck Strike Cigarettes was the currency of choice. shelves were empty. chancellor Adenauer.against idiotic american advice, went free market. there was no rationing or price controls.in 3 month, while products were expensive, the shelves were full. It was the start of the German post war economic miracle.
 
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I am convinced Zimbabwe's problem underlying all their other mistakes is a collapse in productivity after the Mugabe revolution. If they tie themselves to a foreign currency* they will remain in desperate straights unless they can increase productivity. They have abundant natural resources, but they are wanting in a sufficiently educated population and thus the infrastructure and expertise to make these resources productive. At one time before the revolution, Rhodesia was the "breadbasket of Africa". Mugabe understandably wanted to reward his freedom fighters. So the farms were broken up and the land parceled out to those who hadn't a clue on how to productively farm it. Productivity collapsed.

All modern fiat currencies are supported by productivity. Productivity is the modern equivalent of a commodity standard for currency, e.g., gold. But productivity is more flexible and hence fiat currencies are superior to commodity based currencies, but only when they are managed wisely and there is sufficient productivity to back them.

https://qz.com/africa/458137/mugabe-is-asking-back-the-white-farmers-he-chased-away/

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* Ecuador did that with some success, but Ecuador discovered a product they could sell, oil, and they did. They risk too narrow a base for their productivity. Panama hats (they come from Ecuador) and potatoes can only carry you so far. A country needs high value added products to support its productivity, or it needs tremendous productivity of low value added products. (Canada, for example, has both. And Canada has an excellent public education system to support their productivity.)
 
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They have a money management problem at the national level. In all third world countries, central bank has zero control over monetary policy. Once cornered, the central printer is on overdrive.
 
Actually, Zimbabwe doesn't have any options. They kicked out the Whites and that was the end of prosperity. South Africa would like to do similar. I'm surprised that Whites are still in that place, they have been victimized for many years. Whites are still the backbone of the South African economy of course but eventually they will have to go.

Genesis says "Japeth shall prosper" and gives enough info so we can know that they are Indo-Europeans and are stunningly more prosperous than Ham [Africa and Southeast Asia] and Shem [the Middle East]. All this intellectual government theory about equality and all is just moronic drivel and not the way to bet.
 
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