Dinar Daily
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Latest topics
» Iraq's PM talks to CNN about the future of his country's relationship with the U.S.
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeYesterday at 11:24 am by GirlBye

» Bank Story #425
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeFri Sep 22, 2023 5:48 pm by GirlBye

» Iraq Discusses Natural Gas Investments With U.S. Firms
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeFri Sep 22, 2023 5:40 pm by GirlBye

» A Deeper Dive into Effects and Benefits of Cannabis
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeWed Sep 13, 2023 3:15 am by hazeljohn

» Iraqi Dinar Scam?
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeMon Sep 04, 2023 9:25 pm by RamblerNash

» Currency revaluation scams have found a new home on Etsy
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeMon Sep 04, 2023 9:14 pm by RamblerNash

» Melanie Hinds ADMITS to STEALING From a BANK! 9/1/23
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeSat Sep 02, 2023 3:31 pm by Ssmith

» The Fundamentals of Finance Dinar Scam Video
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeFri Sep 01, 2023 8:47 pm by Ssmith

» I have some sad news...PurpleSkyz has passed
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeThu Aug 31, 2023 12:59 pm by Zig

» Legal Translation Dubai
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeThu Aug 31, 2023 3:37 am by CLT2020

» Time Tested Tony
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeThu Aug 24, 2023 3:15 pm by Mission1st

» Oh Ye of Little Faith
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeWed Aug 23, 2023 11:03 pm by Kevind53

» Delta 8 hemp flower
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeWed Aug 23, 2023 6:03 am by emmanoah

» CBD Vape Cartridges
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeTue Aug 22, 2023 1:34 am by hazeljohn

» The Death Of The Iraqi Economist, Sinan Al-Shabibi
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeMon Aug 07, 2023 4:09 am by Rickuda

» A DEATH AT 22
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeMon Aug 07, 2023 4:08 am by Rickuda

» Noah's Ark
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeWed Aug 02, 2023 7:44 am by Zig

» Follow the clicks
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeThu Jul 27, 2023 11:19 am by Mission1st

» Everyone’s Talking About Currencies: 21 Points
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeMon Jul 24, 2023 2:01 pm by Purpleskyz

» DRAMA In DINARLAND! Melanie vs. Nader! 7/14/23
 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 I_icon_minitimeMon Jul 17, 2023 5:58 pm by Ssmith

Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19

2 posters

Go down

 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 Empty Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19

Post by Ssmith Fri Feb 22, 2019 10:10 am

Zim says exchange rate to strengthen, thanks to 'new currency'

Feb 22 2019 09:01
Antony Sguazzin, Bloomberg

 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 D8c911b46f48459d8c404615c8d21d0d

Zimbabwean dollar bond banknotes. (Photographer: Waldo Swiegers/Bloomberg)

Zimbabwe’s government expects the exchange rate of what is in effect a new currency to strengthen from its current black market level when it starts trading. The political opposition isn’t so sure.

On Wednesday, central bank Governor John Mangudya said the government will no longer insist that quasi-currencies known as bond notes and RTGS dollars, an electronic equivalent, are worth the same as real US dollars. They will be merged and allowed to trade freely in an inter-bank market.

Those instruments were trading at between 3.66 and 3.80 to the dollar before the announcement, according to marketwatch.co.zw, a website run by financial analysts.

“The market has been clamoring for its introduction. This is a measure that removes most of the distortions that were impacting the market,” said George Guvamatanga, the permanent secretary in the Finance Ministry. “The market will determine the rate. You could call it a float.”

The measures come as the government scrambles to end a currency shortage that’s pushed inflation to the highest rate since 2008 and sparked shortages of fuel and bread. The troubles stem back to the country abandoning the Zimbabwe dollar in 2009, after a bout of hyperinflation, in favor of the US greenback. In 2016, it introduced the bond notes, which aren’t accepted outside the country.

Purchasing Power

The official inflation rate has soared to 57% from less than 4% a year ago. Steve H. Hanke, a professor of applied economics at the Johns Hopkins University in Baltimore, calculates it to be even higher, at 269%.

“We are expecting the rate on the alternative market will come down,” Guvamatanga said. “The models we have worked on have shown a lower side of 1.86 and a higher end of 2.53.”

He said the models were based on purchasing power parity.

The biggest opposition party, the Movement for Democratic Change Alliance, isn’t convinced.

“It’s insanity,” said Tendai Biti, a senior party leader and former finance minister. “They have through the back door reintroduced the Zimbabwe dollar.”

He said the country’s fundamentals won’t support a new currency because there are no reserves to back it up, no market confidence and no macroeconomic stability. Biti estimates that the RTGS dollar will trade at between six and eight to the US dollar.

The central bank will probably have to supply plenty of real dollars to keep the next exchange rate stable, according to NKC African Economics, based in Paarl, South Africa.

“To anchor price stability, the Reserve Bank will aggressively intervene in the liquidity market,” Jee-A van der Linde, an economist at NKC, said in a note to clients. “The fact that officials finally came to their senses and ditched the notion that Zimbabwe’s quasi-currency was at par with the US dollar, is comforting.”


https://www.fin24.com/Economy/Africa/zim-says-exchange-rate-to-strengthen-thanks-to-new-currency-20190222
Ssmith
Ssmith
GURU HUNTER
GURU HUNTER

Posts : 20495
Join date : 2012-04-10

Back to top Go down

 Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 Empty Re: Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19

Post by Kevind53 Mon Feb 25, 2019 1:09 am


“It’s insanity,” said Tendai Biti, a senior party leader and former finance minister. “They have through the back door reintroduced the Zimbabwe dollar.”

He said the country’s fundamentals won’t support a new currency because there are no reserves to back it up, no market confidence and no macroeconomic stability. Biti estimates that the RTGS dollar will trade at between six and eight to the US dollar.

His point is quite valid. Why should the people trust it when the root issues have not been dealt with? If you try to rebuild with out dealing with the faulty foundation, you're just looking for trouble.

*****************
Trust but Verify --- R Reagan Suspect

"Rejoice always, pray without ceasing, in everything give thanks; for this is the will of God in Christ Jesus for you."1 Thessalonians 5:14–18

  Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 2805820865   Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 2805820865   Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 2805820865   Zimbabwe: Exchange Rate to Strengthen, Thanks to New Currency 2/22/19 2805820865
Kevind53
Kevind53
Super Moderator
Super Moderator

Posts : 27252
Join date : 2011-08-09
Age : 24
Location : Umm right here!

Back to top Go down

Back to top


 
Permissions in this forum:
You can reply to topics in this forum