Zimbabwe government trying to push for new Zimbabwe Dollar - Surprised?

[CryptoBry]

I am sympathizing with the people of Zimbabwe especially those in the marginalized sectors of the society as they are the ones taking the big hit  when the economy is on chaotic scale. What happened in Zimbabwe can be the result of so many misplaced and misguided decisions of the government in the past and there seems to be the tendency to be repeating the same mistakes over and over again. Right now, the government is burdened in finding adequate measures to control the runaway inflation and to make the economy back to the path of stability and growth. To me, there is no easy fix here. The government must be honest in telling the people of the real score and come up with multi-sectoral approach to the problems so that the challenges are shared by all. I am hoping that soon solutions can be found.

[1714767747]

1714767747

[1714767747]

1714767747

[1714767747]

1714767747

[FanEagle]

New economical model doesn't work out if its not sustainable. You can do whatever you want, you can find the greatest solution to inflation ever but as long as its not sustainable it would not make any difference at all. For example, why does their money worth nothing? Its because they have too much debt and they do not have anything to sell outside world so anything they buy from other countries would mean higher debt for them, how do they end up paying that debt?

By printing more money for themselves and exchanging it to dollars as much as they can and pay it. That makes their money worth less and devalue and they keep doing that over and over again. You need to find a solution that would not require you to print money to begin with. If you can't do that than there is no temperament solution, only temporary bandaid.

[Upgrade00]

Corruption and gross mismanagement are the main reasons the nation is where it is today. The current and past state of the economy has discouraged foreign investments and Zimbabwe also frustrates local entrepreneurs who end up taking their businesses and revenue to more friendly countries.
The citizens can make a switch to cryptocurrency, preferably bitcoins and use it for peer to peer transactions.

[TastyChillySauce00]

New economical model doesn't work out if its not sustainable. You can do whatever you want, you can find the greatest solution to inflation ever but as long as its not sustainable it would not make any difference at all. For example, why does their money worth nothing? Its because they have too much debt and they do not have anything to sell outside world so anything they buy from other countries would mean higher debt for them, how do they end up paying that debt?

By printing more money for themselves and exchanging it to dollars as much as they can and pay it. That makes their money worth less and devalue and they keep doing that over and over again. You need to find a solution that would not require you to print money to begin with. If you can't do that than there is no temperament solution, only temporary bandaid.

and I will bet that their citizens will trying to exchange their money to foreign currency and stack them before the huge inflation hits.
It is basically like offering a paper that grant you access to gold and then they remove the gold but still expecting that paper to be worth or holds the value.
That will work as long as people didn't know that the gold has gone but they will eventually know anyway.

[FIFA worldcup]

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.

Zimbabwe is in econminic crisis and whatever the government do i hope it is the betterment for this citizens and its people.

But to be honest I am not sure if this new plan of Zimbabwe government will succeed.

[bryant.coleman]

They have softened the decision now. Individuals can withdraw up to $1,000 per day from foreign currency accounts with Zimbabwean banks. The amount may seem pretty sizable, but those who are having millions in their accounts (businessmen, corporations.etc) are going to face a lot of issues. Also, this will discourage the ordinary Zimbabweans from depositing foreign currency (USD, ZAR.etc) in the banks. Now they are more likely to keep the banknotes at home, and this is going to increase the rates of theft and home invasions.

I would advise the Zimbabwean government not to push too hard. If you start seizing the bank accounts and make it difficult to withdraw cash, then the account holders will just migrate to neighboring nations such as South Africa and Botswana. In the end, the lower class will suffer due to the loss of income.

[oxgroth]

Zimbabwe is killing own economy again

[aioc]

I don't know much about Zimbabwe but judging from their very high inflation, they need a very good economic manager and a good fiscalizer, they should concentrate more on creating jobs and drought is also one thing that contributes to its economy and the health condition in that country is not good I read there was a cholera outbreak and it happens from time to time, they need a lot of aids from rich country from the European.

[fiulpro]

I think instead of giving out a new currency they should actually wait and make the current one stronger .
Nothing will happen if you introduce the same thing in River when it's already flowing , even this will drown badly..
The country needs a good financial advisor at the same time work towards paying off the loan that they have over themselves.
Citizens cannot protect themselves until and unless they grow their own food is what I think , the government has hold over them in everything.
Government needs to do something about the inner thing instead of just changing the outer perspective.

[SaShiRaJaVu]

I would advise the Zimbabwean government not to push too hard. If you start seizing the bank accounts and make it difficult to withdraw cash, then the account holders will just migrate to neighboring nations such as South Africa and Botswana. In the end, the lower class will suffer due to the loss of income.

I would be surprised if the companies are still hoping for an economic reform in Zimbabwe and continue to function, the time has already passed to move out of the country and the people are already struggling with the inflation and poverty and the government is not doing much about it and i am not expecting any changes in the near future until there is a complete change in the political situation of the country.

[bryant.coleman]

I would advise the Zimbabwean government not to push too hard. If you start seizing the bank accounts and make it difficult to withdraw cash, then the account holders will just migrate to neighboring nations such as South Africa and Botswana. In the end, the lower class will suffer due to the loss of income.

I would be surprised if the companies are still hoping for an economic reform in Zimbabwe and continue to function, the time has already passed to move out of the country and the people are already struggling with the inflation and poverty and the government is not doing much about it and i am not expecting any changes in the near future until there is a complete change in the political situation of the country.

To be fair, there was political change in Zimbabwe a few months back. The dictator (Robert Mugabe) was kicked out and he was replaced by the democratically elected Emmerson Mnangagwa. After the new president took charge, initially there were signs of improvement in the economy. But Mnangagwa is also from the same party as Mugabe (ZANU-PF) and he refused to change many of the decisions made by Mugabe.

Anyway, the economically powerful white minority has almost vanished from Zimbabwe. There are significant reserves of precious metals such as Platinum, but these mines are mostly owned by Russians and the Chinese. Agriculture has been in disarray ever since the farm seizures. Future outlook looks bleak for Zimbabwe, unless another political change happens.

[dengpei]

I would advise the Zimbabwean government not to push too hard. If you start seizing the bank accounts and make it difficult to withdraw cash, then the account holders will just migrate to neighboring nations such as South Africa and Botswana. In the end, the lower class will suffer due to the loss of income.

I would be surprised if the companies are still hoping for an economic reform in Zimbabwe and continue to function, the time has already passed to move out of the country and the people are already struggling with the inflation and poverty and the government is not doing much about it and i am not expecting any changes in the near future until there is a complete change in the political situation of the country.

To be fair, there was political change in Zimbabwe a few months back. The dictator (Robert Mugabe) was kicked out and he was replaced by the democratically elected Emmerson Mnangagwa. After the new president took charge, initially there were signs of improvement in the economy. But Mnangagwa is also from the same party as Mugabe (ZANU-PF) and he refused to change many of the decisions made by Mugabe.

Anyway, the economically powerful white minority has almost vanished from Zimbabwe. There are significant reserves of precious metals such as Platinum, but these mines are mostly owned by Russians and the Chinese. Agriculture has been in disarray ever since the farm seizures. Future outlook looks bleak for Zimbabwe, unless another political change happens.

Democratically elected Emmerson Mnangagwa???  The guy gained power via a coup and rigged the July 2018 elections! The economy is just negatively reacting to his election fraud, simple!

[bryant.coleman]

Democratically elected Emmerson Mnangagwa???  The guy gained power via a coup and rigged the July 2018 elections! The economy is just negatively reacting to his election fraud, simple!

If this is true, then I stand corrected. I don't have much information about the 2018 elections, but I thought that it was a free and fair one!

Checked the wikipedia article for the same, and looks like you were correct. Activists including Tony Reeler had issued boycott calls for the election. Independent observers noticed widespread instances of vote rigging and fraud and there was violence before and after the elections.

Looks like these guys just want to hang on to power. They don't really care about the country, its economy and its citizens.

[jostorres]

New economical model doesn't work out if its not sustainable. You can do whatever you want, you can find the greatest solution to inflation ever but as long as its not sustainable it would not make any difference at all. For example, why does their money worth nothing? Its because they have too much debt and they do not have anything to sell outside world so anything they buy from other countries would mean higher debt for them, how do they end up paying that debt?

By printing more money for themselves and exchanging it to dollars as much as they can and pay it. That makes their money worth less and devalue and they keep doing that over and over again. You need to find a solution that would not require you to print money to begin with. If you can't do that than there is no temperament solution, only temporary bandaid.

Well, the damages has already been done and I believe that they are also looking for the solution to undo the damages, which I am also very much sure that they will have lots of financial experts too that would have been advising them on what to do, and you know that when it comes to advise, each and every one of us have our own different views, there is therefore no harm in trying different ways that comes to them at this point for them to see if it will help the situation of their country and bring them out of the disaster they have brought themselves.

They cannot because of this issue disintegrate, all they can do is to keep trying different solutions until they get the right one to fix the dilemma they are in. So if its orienting more money, creating a new dollar or using crypto that they feel will help, they just need to act on one.

[davinchi]

Democratically elected Emmerson Mnangagwa???  The guy gained power via a coup and rigged the July 2018 elections! The economy is just negatively reacting to his election fraud, simple!

If this was true, what was Zimbabweans too looking till such a terrible leader took over power, and things like coup like this is very difficult to get the person to step down, except maybe they use force on him, the way it happened to Gadhafi.

If I was the president, I would just stepped down for another president, hoping that the new president will be able to handle the bad situation of thins, and when handling to any president, they need to look for president that have real use, I mean one that is a technocrat and would be able to proffer solution in a professional way to the country and to its citizens.

I am not sure orienting of more money would be the answer to their problem, they just need to change the leader, once they change the leader, that is all.

[royalfestus]

Making a new coin wont solve such problem, the approach sometimes about economic problem in all the third country is astonishing.  They should know that they will go back to the same product, if the inflation itself is not handled. The national debt, demand pull, exchange rate, money supply to the economy is properly managed. If not controlled the value of the money will still reduce. The country need to determine and put the right people in place

[Hydrogen]

A stable and reliable currency is one central pillar supporting a nation's economy and business. When said stability and reliability are removed it dooms nations to economic ruin and poverty. We've witnessed this trend in places like zimbabwe and venezuela. The deterioration is remarkable in that it may be addressed by employing more responsible controls over the printing of paper money with perhaps a reduction on measures designed to reduce capital flight.

When I see countries like zimbabwe or venezuela struggling with hyperinflation I always think it could easily represent my future as an american.

There are many parallels which could be drawn between US fiscal / economic policy and circumstances leading to hyperinflation abroad. Similar rampant overprinting of fiat currency leading to historical devaluation. Fundamentally flawed attempts at the highest levels of government to tax and spend their way out of deficit and debt. Globally we have many banks defaulting. Many economies contracting or displaying negative growth.

Death tolls related to fiat hyperinflation in some regions could surpass fatalities related to guns, climate change or any hot topic covered by the media. There is a concerning and dire need for better information on fiscal monetary policy in terms of how the public can maintain their purchasing power and stored wealth while mitigating risks associated with overprinting and hard devaluation.

[whyrqa-1]

In my opinion, creating new money will not save the state, because it doesn’t matter which paper it is printed from and what it is depicted on this money, because if there is no strong economy and gross domestic product, it is practically impossible to achieve good results in the country's financial sector.  Most likely, the Zimbabwean government is trying to replace the general hype around their old currency in order to visually deceive the countries and organizations that are involved in charity and financing of underdeveloped countries.

[seraph_the_wise]

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.

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.

[bryant.coleman]

I checked the latest updates and still there is not much information regarding when these new notes will be issued. I hope they will postpone their plans infinitely as this can cause a great deal of hardship to already impoverished people. Their modus operandi is very simple. They will first ask the residents to convert all their USD/EUR/ZAR to the new currency. Once the government is able to collect all the forex from the people (and steal 90% of it), they will start the same drama again. They will start printing banknotes without any control and ultimately this will make the new currency worth less than the toilet paper.