SandnSea: ZIM's Are Bearer Bonds - It Says So On It

:tup: :tup: :tup:

Yosef started the rumor of it being an historical bond.

https://www.google.com/amp/s/amp.cnn.com/cnn/2016/05/06/africa/zimbabwe-trillion-dollar-note/index.html

:tup: :tup:

Harold4187 wrote: https://www.google.com/amp/s/amp.cnn.com/cnn/2016/05/06/africa/zimbabwe-trillion-dollar-note/index.html

The 100 trillion dollar bank note that is nearly worthless

From Earl Nurse, CNN

Updated 6:57 AM ET, Fri May 6, 2016

(CNN)What do the U.S. dollar, South African rand, the British pound, Indian rupee, Japanese yen and Chinese yuan have in common?

They are among the currencies being used in Zimbabwe as a solution to the country's problems with hyperinflation.

Since 2009, Zimbabwe has used other currencies in lieu of its own, which it abandoned after hyperinflation of more than 5,000 percent made it essentially worthless.

This system of using multiple currencies has led to a deflation rate of -2.3%, according to Zimbabwe's bank governor.

"We changed to a multiple currency system to stabilize, and inflation went down to 0% and it was magic," said the Zimbabwe Reserve Bank Governor, John Mangudya.

Z$100,000,000,000,000



Zimbabwe used to have a Z$100,000,000,000,000 note - one trillion Zimbabwean dollars.

The note, along with previous hyper-inflated denominations including Z$10,000,000,000,000 (ten trillion) and Z$1,000,000,000,000 (one trillion), could be exchanged for U.S. dollars until the end of April 2016, but it was worth only about $0.40. It is fetching significant higher prices as a novelty item on websites such as eBay.

When inflation hit 230,000,000 percent in 2009 , the country's reserve bank -- infamous for its inability to contain sky-high hyperinflation -- declared the U.S. dollar as its official currency.

From excessively high inflation to -2.3% deflation, Mangudya remembers the tough years vividly. "It was so traumatizing," he admitted. "We didn't have the tools to fight the monster that the economy was facing at the time."

The country had to keep printing money. Prices would change by the minute, causing stress revolving around the fluctuations, one of the devastating effects of hyperinflation.

"It was terrible. You'd have to pay for your coffee before you drank it because if you waited the cost would rise within minutes," said businessman Shingi Minyeza, chairman of Vinal Investments.


Dollar is king

The U.S. dollar is the preferred currency in Zimbabwe at present, but others are welcome.

"We are saying that since you can import/export goods from South Africa you can use the rand. If you are importing from China you can use the yuan. The U.S. dollar is our reserve currency," explained Mangudya.

Zimbabwe seems years away from reintroducing its own currency. In the meantime, it has coins called bonds. For each coin in circulation there's an equivalent U.S. dollar coin held in reserves.

There are over $13 million worth of these coins in the country, CNN was told, but recently banks have started printing "bond notes" representing U.S. dollar values up to $20, due to a cash shortage.

Seems the more things change, the more that going back to the basics is the only option.

Before the government of Zimbabwe decommissioned the old currency, they officially deleted 12 zeros first.  Meaning a 100 Trillion note is worth 100.  100 of what, no one knows.

I think SandnSea is referring to the words: "I promise to pay the bearer on demand..."

But this doesn't mean it's a bond; it's a "promissory note". Up until recently, all UK banknotes had the same wording.

Promise to pay on Bank of England banknotes

Date Released: 23 March 2011

Disclosure: Since its foundation in 1694, the Bank of England has issued notes promising to pay the bearer a sum of money. For much of its history the promise could be made good by the Bank paying out gold in exchange for its notes.  The link with gold helped to maintain the value of the notes, although the link was sometimes suspended, for example in wartime.  The link with gold was finally broken in 1931 and since that time there has been no other asset into which holders have the right to convert Bank of England notes.  They can only be exchanged for other Bank of England notes.  Nowadays public faith in the pound is maintained in a different way – through the Bank of England's operation of monetary policy, the object of which, by statute, is price stability[1].

Legally Bank of England notes might be viewed as promissory notes within the meaning of the Bills of Exchange Act 1882.  Section 83(1) of the Act provides that a 'promissory note is an unconditional promise in writing made by one person to another signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money, to, or to the order of, a specified person or to bearer.'  However, the status of Bank of England notes also needs to be read in the light of other statutory provisions [2].

Source:http://www.bankofengland.co.uk/publications/Pages/foi/disc110323.aspx

:tup: :tup: :tup: :tup: :tup: