Currency in Zimbabwe

by Mathew Ogunsina



This is another milestone set by Beijing to be in the court of the great powers, those whose currency refers. As of January 1, the yuan (or remimbi) rub shoulders with the US dollar, South African rand and the Botswana pula in the pockets of the people of Zimbabwe.

It must be said that the situation in this country is special. He has no national currency since 2009. The failed land reform President-dictator Robert Mugabe has led to a severe economic crisis that the government tried to stop cranking printing money. Result: hyperinflation than 500,000,000,000% according to the IMF. In 2009, the face value of the last break of the Zimbabwean dollar circulated by the national bank of the country had reached a surreal level: 100.000 billion!

This colossal runaway had forced the country to bury the dollar and instead use foreign currencies. This summer, the last ticket holders could exchange to the central bank over $ 1 to 35 million Zimbabwean billion. An absolutely dizzying exchange rate.

Xi Jinping has mobilized to impose the yuan

The yuan, he built several months ago the basket of currencies that make up the foreign exchange reserves of Zimbabwe. And so, in 2016, it can be used for all payments of daily life. To succeed in imposing and its currency, China has multiplied gestures of goodwill. Xi Jinping, the president, whose movements are rare, personally went to Harare, the capital, in early December, with some arguments in the round.


China is now the largest trading partner of the country, agreed to write off a debt of 40 million US dollars was Zimbabwe and pledged a loan of $ 1 billion, with lower rates. Several agreements, mainly aimed to enhance and rebuild infrastructure were also signed.

inexpensive gestures to the world’s largest economy whose currency gains greater legitimacy in exchange. The side of the Zimbabwean government is a winning transaction. President Robert Mugabe, speaking Tuesday hope it will facilitate the “cash injection” and even takes to dream that this agreement “could give a boost to the economy.” Shunned by his former Western partners because of its failure to respect human rights, Zimbabwe looks more than ever towards the East ..

http://howafrica.com/breaking-the-chinese-yuan-becomes-official-currency-in-zimbabwe/

Cc: Mukina2, Lalasticlala you MUST push this to FP so that Nigeria can learn.

China gradually taking over the world!

This is indeed a terrible thing. If I can remember well about few years back, the Zimbabwean dollar crashed and almost became worthless that loaf of bread went for almost 1,000 Zimbabwean dollar now today, the Chinese Yuan is the official currency in the same Zimbabwe. take a look at Nigeria ruled by an old man who is not in tune with current happenings in world event. He even erroneously signed a huge $2 billion business pact with China meaning China will flood our shores with their sub standard products hence, burying the Manufacturing sector of Nigeria while on the other hand boosting the over $3 trillion output of China's Manufacturing sector. Unfortunately some Zone-Bs are still chanting, "I stand with Buhari"

China incoming!!! US, your days are numbered....

Mugabe want to stop hyperinflation and china want to proof some points to the west.
But when I look at the $40m amount involved I feel Speechless.....SMH


The $1b investment loan is another attraction but men truly Zimbabwe seems to have become a lost cause.

Another colonial rule in the making.

Is this not a blow on th US? Somebody pls explain

ogogogogo!!!! Chinese have come ro colonize Zimbabwe oooo....

edebemba:
Another colonial rule in the making.

I think we should worry more about Nigeria current situation. Remember that this was how Zimbabwe started with the fall of their local currency.

Ratello:
This is indeed a terrible thing. If I can remember well about few years back, the Zimbabwean dollar crashed and almost became worthless that loaf of bread went for almost 1,000 Zimbabwean dollar now today, the Chinese Yuan is the official currency in the same Zimbabwe. take a look at Nigeria ruled by an old man who is not in tune with current happenings in world event. He even erroneously signed a huge $2 billion business pact with China meaning China will flood our shores with their sub standard products hence, burying the Manufacturing sector of Nigeria while on the other hand boosting the over $3 trillion output of China's Manufacturing sector. Unfortunately some Zone-Bs are still chanting, "I stand with Buhari"

I thought you were intelligent until when I reached the sub-standard goods part. You don't know anything

APCsupporter:


I thought you were intelligent until when I reached the sub-standard goods part. You don't know anything

Mr intelligent please exhale and tell me what I don't know I want to learn.

This is a time bomb already exploding before our very eyes. Little wonder Africa is flooded with many Chinese products in all spheres and with this development Africa States need to beware because China is already here and there to rule by proxy - Yuan!

''Failed land reforms''? The writer must be mad. Tell that to the MILLIONS of former peasant land tenants now turned landowners with a future., and a stake in their country going forward. It will only be ''falied'' to the minority city dwellers, like that writer, who missed their imported cornflakes and Italian shoes following western sanctions - and blame Mugabe for it. The rural majority, formerly slaves to white landowners, LOVE Mugabe, and are very grateful for the land reforms. The country is making a RECOVERY, and the western sanctions are being neutralised by Zimbabwe's partnership with China.

Rossikk:
''Failed land reforms''? The writer must be mad. Tell that to the MILLIONS of former peasant land tenants now turned landowners with a future., and a stake in their country going forward. It will only be ''falied'' to the minority city dwellers, like that writer, who missed their imported cornflakes and Italian shoes following western sanctions - and blame Mugabe for it. The rural majority, formerly slaves to white landowners, LOVE Mugabe, and are very grateful for the land reforms. The country is making a RECOVERY, and the western sanctions are being neutralised by Zimbabwe's partnership with China.

Agreed with you at the bold but the Chinese foreign policies have been more of killing than being beneficial to the host country on the long run. Of course they indicated minimal interests on loans payback but what happens to the host country's manufacturing sector? Dead! Rossikki, believe me I don't see how this move will help Zimbabwe and Zimbabwean dollars out of an impending economic downturn if their local manufacturing industries are not producing.