To solve its hyperinflation problem, Zimbabwe is urging its impoverished citizens simply to buy gold.
Given Zimbabwe's notorious hyperinflation since World War II (79,600,000,000 percent in 2008), this crazy plan to fix Zimbabwe's economic woes is understandable.
In place of US dollars, South Africa has started minting one-ounce gold coins.
Considering the fear factor surrounding the [Zimbabwean dollar's] loss of value, we are introducing this gold coin," Reserve Bank of Zimbabwe chief John Mangudya told local media.
As long as gold remains a store of value, Zimbabweans will no longer be forced to seek out foreign currency on the black market, he asserted
Several things to keep in mind about Zimbabwe's currency journey are as follows:
As of 1980, the Zimbabwean dollar has been overvalued. Officials in the first decade of the twentieth century printed ever-larger banknotes to keep the currency stable.
During the height of the crisis, the Reserve Bank of Zimbabwe pumped Z$100,000,000,000,000 into the economy.
Black market notes initially cost about US$33, but soon couldn't purchase a bus ticket in Harare. On eBay, they now sell for $200 each as collectibles.
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