https://apnews.com/article/zimbabwe-zig-new-currency-5173a73586eef8ad413964f3341...




May 1, 2024

HARARE, Zimbabwe (AP) — Out with the Zimbabwe dollar, in with the ZiG.

Zimbabwe on Tuesday started circulating a new currency to replace one that has been battered by depreciation and often outright rejection by the people. The ZiG was introduced electronically in early April, but people are now able to use banknotes and coins.

It’s the southern African country’s latest attempt to halt a long-running currency crisis underlining its persistent economic troubles. The government had previously floated various ideas to replace the Zimbabwe dollar, including introducing gold coins to stem inflation and even trying out a digital currency.

Since it was launched electronically on April 5, the ZiG —
—
appears to be heading down the same path of mistrust, with some government departments refusing to accept it.

The ZiG is the sixth currency Zimbabwe has used since the spectacular 2009 collapse of the Zimbabwe dollar amid hyperinflation of 5 billion percent, one of the world’s worst currency crashes to date. That set off a chaotic series of events: first the U.S. dollar was allowed as legal tender, then banned, then unbanned.

A new “bond note” became legal tender, the Zimbabwe dollar was reintroduced before the gold coins and digital currency were tried.

However, nothing brought any currency stability and the U.S. dollar remains the most trusted for ordinary Zimbabweans.

As the shiny new ZiG banknotes hit the streets, the mistrust was evident.

Kudzanayi Mande, a vegetable trader at the crowded Mbare market in the capital of Harare, said she would rather forgo a sale than accept the ZiG. She was confused, the 56-year-old said.

“Already there is an official exchange rate and a depreciated black market rate, so I will wait a bit to see what its real value is,” she said. “The U.S. dollar is still a safer bet.”

The government has allowed some businesses, such as gas stations, to refuse to accept the ZiG in favor of U.S. dollars. Some departments, like the office that issues and renews passports, accept only U.S. dollars.

At the same time, other businesses are being ordered to only use the ZiG, and face punishment if they don’t.

Bobby. wrote on May 5^th, 2024 at 4:45pm:


Stop making out I haven't already explained your errors re hyperinflation in  Zimbabwe, Weimar republic and Venezuela (in the MMT thread). 

Inflation is always the result of supply chain failures (whether inter- or intra-national), or loss of capacity to pay for imports because your exports fall in value.   

Bobby. wrote on May 6^th, 2024 at 1:33pm:


Simple-minded 'government as household' orthodoxy; it's a question of who is doing the money printing, and what for. 

Govt. can print money AND control inflation, by ensuring balance between supply and demand for resources.

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The US, Japan, Oz, the UK, France, and many more,  have never experienced hyperinflation, so it's not likely in the future.

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Correct: when the RBA was called upon to pay the bills of locked-down workers - to keep them alive - the RBA should have joined with Treasury in issuing free money, to avoid creating debt which must be repaid to bond holders. 

And the nation would still  have been "living within its means", without creating a build-up in citizen's purchasing power which would later cause inflation due to supply chain failures.

Bobby. wrote on May 6^th, 2024 at 2:27pm:

Er-- you are confusing inflation with hyper-inflation., which most countries have never experienced.

Do try to keep up....

And the 2nd part of my post you completely ignored......

Bobby. wrote on May 6^th, 2024 at 2:48pm:


Nevertheless  many nations around the planet did it - perhaps they had information you didn't? (And poor Boris's career was destroyed because he had a party while everyone else was locked up).

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And yet it was accepted by most governments as a global pandemic. Even India banned travel within the country.

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That's correct; and I explained to you what it SHOULD have done, which you can't - or refuse - to refute in any intelligent manner.