Zimbabwe launches new currency to ease cash crunch

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https://www.rt.com/business/368448-zimbabwe-issues-currency-bond-notes/

The Reserve Bank of Zimbabwe has introduced a national currency for the first time since 2009 in an attempt to tackle a sharp shortfall of the US dollar, the country’s primary medium of trade.

The new currency, called bond notes, is pegged at par with the US dollar and is backed by a $200 million bond facility with Afreximbank, according to the regulator.

An initial amount worth $10 million is going into general circulation in two and five dollar denominations.

The circulation of the dollar will not be suspended.

The bond notes have fueled fears of economic chaos with people’s savings being wiped out. Some analysts call the introduction of the new currency the Zimbabwean president’s “last gamble.”

The bond notes aim to halt the outflow of US dollars from the country as well as to ease a cash shortage.

The country started using US dollar as its primary currency seven years ago following the collapse the Zimbabwean dollar with hyperinflation of 500 billion percent.

Some vendors are accepting the new money, though say they will stop if the notes begin to lose value.

The introduction of the currency might cause shortages of commodities and price hikes, according to Harare-based economic consultant John Robertson.

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bond notes now..what a clusterfuck..

“The new currency, called bond notes, is pegged at par with the US dollar and is backed by a $200 million bond facility with Afreximbank, according to the regulator.”

monetary notes in zimbabwe are good for one thing..and its not using them to make a fire..

401

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~ by seeker401 on December 1, 2016.

6 Responses to “Zimbabwe launches new currency to ease cash crunch”

  1. Salt is a safer currency for basket case Zimbabwe and the Romans got on fine with it

  2. Reblogged this on World Peace Forum.

  3. Thanks for the smile; yes, what a conundrum for man vs the real global Ponzi…

  4. Venezuela is next.
    This is the norm for currencies when they hyperinflate out of control, the Wiemar Republic in Germany did the same.
    You may well see a lot of countries in this predicament, if Trump is unable to smooth out “The Great Correction.”
    Right now, I’m a bit more worried about India’s run on it’s banks. If it triggers the dominoes of the derivatives market, this could be very bad indeed. Currently, the derivatives market can potentially expose banks all over the world to losses equivalent to 5 times the world’s GDP. If it all crashes, all of the world’s banks crash, with the possible exception of the central banks, who can print money on a whim if the various world’s governments turn a blind eye (which they probably will).
    Alternately, this scenario would also be a perfect opportunity to nationalize all central banks, turn their powers over to national treasury departments, and free the majority of the world’s citizens from the slavery of usury (if we have the brains to do it).
    And yes…usury is unnecessary. You have simply been raised to think it’s normal and natural, but it simply does not have to be. A nation’s Treasury could easily loan you money for to buy a home or start a business or go to college or even buy a primary vehicle for transportation, and only demand repayment of the principal (if you’re a good risk). leave the private bank usury to credit cards & large loans to Wall Street corporations…and limit even that usury by law.
    All the easy credit and lack of actual economic activity is starting to come to a head, and if action is not taken to cushion the correction, things could get very nasty, all over the world.

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