Skip to main content

Posts

Showing posts from May, 2016

It would be funny were it not sad: The absurdity of the notion of using bond notes as an export incentive

That the generality of Zimbabweans are associating the impending bond notes with the ill-fated Zim dollar is a pretty foregone conclusion. The memory of the ghosts of 2007-08 hyperinflation era still lingers fresh in the minds of people. Evidence of this comes in the form of panicked cash withdrawals from the country`s banking system, as the public attempts to hold onto as much of the greenback as they possibly can, in the face of a pointedly uncertain economic future for the country.
In the seven years since the introduction of the multi-currency system, in spite of there being a basket of several currencies, the US dollar has remained the predominant currency in use, fulfilling the major functions of money in an economy i.e. store of value, unit of account, means for payment. Any deviation from the system that is seen to have stabilized the financial system was always going to be a hard sell. And with good reason too. No-one really trusts the mandarins running the economy!
The $200 ml…