Breaking News

Zimbabwe cash problems will not be solved by using foreign monies alone

by Dr Masimba Mavaza
06 December 2018 | 2404 Views
It is true that businesses in Zimbabwe discuss major business deals and even small purchases with the cost listed in US dollars, even when the US is not involved in the transaction. The US dollar is viewed by many as the "unofficial world currency".  But the reality is Zimbabwe is not the world. We can not have someone controlling the money we are supposed to control as well. Governor in the bank of America has no interest on Zimbabwe. Running an economy on a borrowed cash is pathetic.  Time for politicking is over, results can not be promised forever. Demagogs never change lives but only change minds.  Changed minds only become make belief. You can not put the mind on the table but food. People out there now need food on the table and that needs no command economy. It needs real non partisan action.  

US dollar has its history and its history is not Zimbabwean grown.

Up until the end of World War II the British Pound was one of the world's dominant currencis and was frequently used in international business transactions. However, the war significantly weakened the British economy and the scope of the British Empire. Due to its stability and the fact that the US dollar was backed by gold reserves, it quickly proved a popular choice for countries to tie their exchange rates. It should be noted that foreign exchange values place a significant value on political and economic stability. Since the US has a long history of both, the designation remained even after the US abandoned the gold standard in the 1970s. The US dollar has never been devalued and all currency that has ever been issued by the US government remains legal tender.

Another factor in the worldwide use of the dollar is the currency's acceptance. The currencies of many wealthy countries, including Russia and China, are not accepted worldwide. This greatly limits the ability to use the ruble and yuan for international transactions. The same criteria can be used for many of the currencies of the oil rich Middle Eastern countries. It is estimated that as much of as 80% of all transactions in Asia are made in dollars.

The biggest question is what are we as Zimbabwe trading.  We are not the only country which uses the US dollar.

There are so many countries indeed
It comes as a surprise to many that various countries do not have their own currency and instead use US dollars for all transactions.  The official currency of the following countries is the US dollar.

  • Commonwealth of Puerto Rico
  • Ecuador
  • Republic of El Salvador
  • Republic of Zimbabwe
  • Guam
  • US and British Virgin Islands
  • Democratic Republic of Timor-Leste
  • American Samoa
  • Commonwealth of the Northern Mariana Islands
  • Federated States of Micronesia
  • Republic of Palau

There are also a number of countries where most shops and businesses will readily accept US dollars. They include:

  • Canada - especially cities near the US border
  • Russia
  • Panama - Panama actually has two "official" currencies, the Panamanian balboa and the US dollar. Both are equal in value.
  • The Bahamas - Like Panama, the Bahamas have two official currencies. The currency of the Bahamas is also called the "dollar." The two currencies are equal in value.
  • Turks and Caicos Islands
  • Vietnam - Merchants have long accepted US dollars however the Vietnam State Bank is attempting to crack down on businesses that accept or list prices in US dollars.
  • Cambodia
  • Nicaragua
  • Belize
Many of the islands in the Caribbean also will accept US dollars as payment.

It should be noted that, although the US dollar is very prevalent, it is not the only currency that has fairly wide acceptance. The South African rand, the Australian and New Zealand dollar and the euro also are accepted outside their countries. Even the Russian ruble, which is not widely accepted, is still used and accepted in some of the former Soviet Union countries.




 But the point is they have their own currency and can control it.
Our problem is trying to control what is not ours.  

We can not control the speed of a car which we are not in it.
Cash problems in Zimbabwe needs Zimbabwean solutions. Zimbabwean solution is not enshrined in Slogans.
Zimbabwe is now having cash barons who are roaming the streets freely because of their proximity to the powers that be.
Arrests must cut across the board they must not be factional.

The current government has no pressure from the opposition. The opposition is busy fighting for its own survival so this is a God given window to concentrate on the economy.  We need to weed out corrupt ministers irregardless of their relationship to the powers that be.

Corruption hurts all of us and we give this responsibility to the President to stand above partisan politics and put Zimbabwe first. Criminals from both sides including opposition must be arrested their loot must be ploughed back in the community. Zimbabwe must not be held at ransom by few thugs.  

How long shall we be in this quagmire.  We must be freed from this economic bondage. We must have our own currency not bond.  Bond notes have outlived their time.

A new dispensation must bring fruits now. We do not eat promises. The president promised to hit the ground running. The world is watching the speed.  How fast we run is in the foot of the president.  

Vazet2000@yahoo.co.uk

cash problems US dollars Forex


Disclaimer:
All articles and letters published on Bulawayo24 have been independently written by members of Bulawayo24's community. The views of users published on Bulawayo24 are therefore their own and do not necessarily represent the views of Bulawayo24. Bulawayo24 editors also reserve the right to edit or delete any and all comments received.

Source: Dr Masimba Mavaza

Comments

Latest News

Mnangagwa's Important Speech

by Tom Nkala | 15 December 2018 | 4788 Views

PHOTOS: MDC gala dinner held in Harare

by Mandla Ndlovu | 15 December 2018 | 5405 Views

PHOTOS: Bomb found at ZBC studios

by Mandla Ndlovu | 15 December 2018 | 7487 Views

Mnangagwa donates 1 000 goats to schools - First lady Auxillia Mnangag...

by Staff reporter | 15 December 2018 | 1781 Views

MDC Alliance losing Cllr jailed - MDC Alliance's losing council candid...

by Staff reporter | 15 December 2018 | 1900 Views

China tells Zimbabwe 'Don't blame us, sort your own house' - The China...

by Staff reporter | 15 December 2018 | 4173 Views

ZANU PF to ammend constitution

by Mandla Ndlovu | 15 December 2018 | 7270 Views

Mnangagwa re-introduces Green Bombers

by Mandla Ndlovu | 15 December 2018 | 5935 Views

Police crush teachers' protest demo

by Mandla Ndlovu | 15 December 2018 | 2933 Views

WATCH: Police demand driver's licence in exchange of fuel

by Mandla Ndlovu | 15 December 2018 | 2892 Views

Harare City Council owes $ 792 million

by Mandla Ndlovu | 15 December 2018 | 1310 Views

Mnangagwa exposes Muchinguri-Kashiri lie

by newzimbabwe | 15 December 2018 | 5732 Views

Zimbabwe doctors using condoms as medical gloves?

by ZimLive | 15 December 2018 | 1626 Views

Chimene's daughter dies

by Staff reporter | 15 December 2018 | 3186 Views

Zimbabwe scoffs at SA ConCourt ruling - PRESIDENT Emmerson Mnangagwa's...

by Staff reporter | 15 December 2018 | 2003 Views

Biti's Magistrate in trouble - HARARE regional magistrate Gloria Takun...

by Staff reporter | 15 December 2018 | 1817 Views

US calls on Mnangagwa to show his statesmanship by urgently - THE Unit...

by Staff reporter | 15 December 2018 | 2061 Views

Suspended Zesa bosses seek removal from remand - THREE suspended Zesa ...

by Staff reporter | 15 December 2018 | 298 Views

Zimbabwe security sector reform back on the agenda - HUMAN rights grou...

by Staff reporter | 15 December 2018 | 404 Views

Mnangagwa to serve his two terms, says Chiwenga

by Staf reporter | 15 December 2018 | 612 Views

Ex-lover drags cop to court over upkeep - A POLICE officer from Bulawa...

by Staff reporter | 15 December 2018 | 331 Views

Second drowned Government official's body recovered - UNDETTERED Minis...

by Staff reporter | 15 December 2018 | 739 Views

'Zanu-PF has no agenda for a GNU'

by Emmerson Mnangagwa | 15 December 2018 | 132 Views

Health hazard looms as hospital Registrars down tools.

by Mandla Ndlovu | 15 December 2018 | 541 Views

Chamisa must wake up from GNU reverie

by Ediitorial - zimpapers | 15 December 2018 | 330 Views

Mukanya will retire when he dies

by Staff reporter | 15 December 2018 | 280 Views

Mohadi's health deteriorates

by Staff reporter | 15 December 2018 | 1751 Views

Mnangagwa warns Zanu-PF against complacency

by Staff reporter | 15 December 2018 | 132 Views

Entertainment

Kalawa Homecoming in disappointing line-up

by Mandla Ndlovu | 15 December 2018 | 1440 Views

Thomas Mapfumo Gweru show flops

by Staff reporter | 09 December 2018 | 4302 Views

Sandra Ndebele speaks to $80,000 'thieves' in new song

by Staff reporter | 09 December 2018 | 998 Views

Kasong Kejecha causes consternation

by Staf reporter | 09 December 2018 | 1016 Views

Thomas Mapfumo jets in tomorrow

by Staff reporter | 03 December 2018 | 2521 Views

Chinese-Zimbabwean model eyes global crown

by Staff reporter | 02 December 2018 | 2840 Views

'Jah Prayzah does not own Military Touch'

by Staff reporter | 02 December 2018 | 2113 Views
iBlog

Tb Joshua Worst Enemy Angelique Tonge Exposed

About two years ago, we came out emphatically about those behind the t.b joshua watch. many were those who thought we were framing innocent people up or on a witch hunt. some events have vindicated us and the cat is out of the bag. it is said that no... Read More
pointblank 01 May 2015 ago

Apple Watch Teardown Reveals Unique Hardware And Replaceable Parts

The apple watch may not be fine jewelry, but bill detwiler cracks it open and shows you why he thinks it's a fine piece of tech. the apple watch may be beautiful on the outside, but how about on the inside? in this cracking open installment, we go in... Read More
Sergey 11 June 2015 ago