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| We saw these on Whats-app groups...are they back??? |
ARE YOU CONSCIOUS THAT 2008 is
BACK? A
few signs have been recorded in the streets of Zimbabwe to prove that we are
back to that year we all hated. Prices of goods have been going up, queues
reappeared in banks, strikes have been seen, unemployment is total, and
finally, those notes that are not tender beyond our borders are back. We have
been collecting peoples’ reactions to this thing.
Our Thando says, “Why
are we caught in the 20th century creating notes when we can digitalize all
transactions? The government should just stop trying, this is the result of the
rule of old people, and they should just start investing in innovation.”
“I
cannot believe that we live on a Beta version of a country forever. All things
are just trial and error, at the end it’s the citizens who suffer”…I say.
WE GOT AFRAID when we heard that
the Minister of State security is ready to go to war for the “pledge”. Not that
we care much of religious choices but for a whole minister who didn’t go to war
when we lost $15 billion to tell the nation that, we say this is evidence of
misplaced priorities. Hope it ends only on headlines, you can fancy to read it
here… http://goo.gl/TiRnz4
ON BOND NOTES; The former Minister of Finance, the man who at least did not
fail in a five year term to hold the finance gears properly had this to say on
the introduction of Bond Notes…. The return of the Zimbabwean dollar
marks the gross admission by this regime that it has failed and failed in
absolute terms and that it will drag every one along in the plunge to abyss
that now awaits this economy.
It is a cynical, disrespectful and
contemptuous move that has absolutely no logic, sense or justification on any
rational ground whatsoever.
A national currency at the end of the day is
a relationship that captures the country s productive capacity. It reflects a
country s output and the strength, quantity and quality of its real economy.
Indeed in the narrow sense the currency is no
more a reflection of the interface between a country s exports and its imports.
In short, a country s currency is easily a reflection of its current account or
trade position.
Thus countries with strong economies that
export a lot and therefore enjoy trade surpluses will tend to have strong and
stable currencies.