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Zimbabwe to Start Circulating New Bond Notes on Monday

posted by Fnord666 on Monday November 28 2016, @08:03AM   Printer-friendly
from the the-name-is-Bond,-James-Bond dept.

n1 writes:

Zimbabwe's central bank said on Saturday it will circulate $10 million worth of new bond notes on Monday, a quasi-currency that authorities expect to ease a serious cash crunch, but will limit withdrawals to curb any abuses.

The Reserve Bank of Zimbabwe (RBZ) first announced the plan in May to issue bond notes to address chronic cash shortages and supplement dwindling U.S. dollars that have been in circulation for the past seven years.

But many Zimbabweans are sceptical about the scheme after a 2008 multi-billion percent inflationary meltdown caused by rampant money-printing. The new plan has already caused a run on the banks as Zimbabweans empty their accounts of hard currency.

The bond notes will be officially interchangeable 1:1 with the U.S. dollar.

Source: Reuters
See also: India grapples with the effects of withdrawing 86% of cash in circulation

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  • (Score: 2) by darkfeline on Monday November 28 2016, @09:36AM

    by darkfeline (1030) on Monday November 28 2016, @09:36AM (#433961) Homepage

    So is Zimbabwe backing their currency with... US currency? Of course, currency is only as good as the trust in it; how many Zimbabweans trust that their government will really exchange these notes 1:1 with USD? Probably not many.

    (US currency is not backed by gold any more. It's trust all the way down!)

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  • (Score: 0) by Anonymous Coward on Monday November 28 2016, @11:37AM

    by Anonymous Coward on Monday November 28 2016, @11:37AM (#433988)

    Then you find that it was all built on lies and control, and that you're well and thoroughly fucked, with a recorded history of all your actions...

    Unless you were smart enough to use two devices instead :)

  • (Score: 0) by Anonymous Coward on Tuesday November 29 2016, @05:16AM

    by Anonymous Coward on Tuesday November 29 2016, @05:16AM (#434352)

    They always start at 1:1 to the USD. And then it always goes to heck. Al that varies is the speed. Zim currency is only backed by how much mineral wealth China can strip mine out while propping up Mugabe.
    And the "West", don't forget, eagerly helped achieve this disaster in the 1970's. Now 10 million people suffer, 12 drive new Mercedes and the Chinese have tons of chrome, gold, etc on tap on demand.