HARARE Zimbabwe (Xinhua) -- The Reserve Bank of
Zimbabwe (RBZ) has commenced the process of demonetizing the Zimbabwe
dollar using the United Nations rate as the exchange rate.
Zimbabwe
abandoned its hyperinflation ravaged currency in 2009 when it adopted
multiple currencies that include the United States dollar, South African
Rand, British Pound, Australian dollar, Chinese Yuan and Japanese Yen.
The
RBZ has set aside 20 million U.S. dollars for the demonetization
exercise, which is expected to be completed by end of this month.
The exercise will ensure that the Zimbabwe dollar is decommissioned and will allay fears of its return.
The move is also expected to boost confidence in the banking sector.
Showing posts with label Zimbabwe Dollars. Show all posts
Showing posts with label Zimbabwe Dollars. Show all posts
Saturday, April 9, 2016
Tuesday, April 5, 2016
The Next Great Currency Scam
The Next Great Currency Scam
Over the past year, I’ve written quite a bit about the Iraqi dinar,
the foreign currency that many self-appointed “gurus” try to convince
buyers will suddenly “revalue” from being one of the most worthless
currencies in the world to one of the most valuable. Dinar brokers sells
bundles of the dinar that you can only buy in cash directly from Iraq,
then you sit on it and wait for the Iraqi government (or President
Obama, or the IMF, or whatever) to pull the trigger on boosting it
hundreds of thousands of percent in value.
It doesn’t take a degree in finance to tell you that this is false. Many actual financial experts have debunked the myth of the Iraqi dinar “RV,” and while gurus have been promising for years that the magical day where millions of dinars turn into millions of dollars was right around the corner, it’s not, it never has been and it never will be. Iraq’s economy is nowhere near being able to support an electronically traded currency with serious value, and it might be a decade or more before that happens.
Fortunately, the dinar scam looks like it’s finally abating. There are numerous, well-written pieces by people at Forbes, Business Insider and others presenting well-researched and logical information about why the dinar is about as worthwhile an investment as magic beans.
Not only that, but law enforcement is starting to crack down on dinar
brokers who exploit a loophole in currency law to sell cash as a
collectable. Of the four dinar websites I mentioned in the piece, one,
Sterling Currency Group has been raided by the FBI and shut down, while
Bet on Iraq is now a dead link. Additionally, one of the most vocal
dinar gurus, Anthony “TNT Tony” Renfrow, recently pled guilty to wire fraud in relation to a different prosperity scam – one that used many of the same techniques as the dinar.
But just as scams like the “Omega Trust” and NESARA begat the dinar scam, it’s only a matter of time before the resources put into selling and pimping this worthless currency is put toward selling and pimping some other worthless currency. Which one will it be? Here a few different national currencies to be on the lookout for as the next great money scam:
Vietnamese dong
If there’s one other currency that dinar gurus love to sell along with the dinar, it’s the dong. Vietnam has a complex history when it comes to currency, one intertwined with the fractured history of the country. Both North and South Vietnam issued their own currency, both called the dong, in the 1950s. When Vietnam was united by the communist insurgency in 1975, the dong was also unified. It went through several redenominations, lopping zeroes off the inflated exchange rate with old currency exchanged for new. For decades, Vietnam struggled with inflation, counterfeiting, and the dong’s lack of value against other currencies.
Finally, in 2003, Vietnam introduced new notes that were harder to counterfeit, and it developed a new banking system designed to handle large transactions.
Even with all of these reforms, the dong is one of the most, if not the most, worthless currencies in the world. It currently trades for around 21800 to one dollar, and only in cash, not electronically. Like the dinar, you can buy them in cash from brokers working under the “money service business” loophole. Like the dinar, the dong is massively overprinted. And like the dinar, they take a massive cut, usually charging between 20 to 25% more than the value of what you’re getting. And finally, like the dinar, the dong has lost value in the past year, as it traded at 21175 to one dollar one year ago. Dongs are becoming less valuable, not more.
But that doesn’t stop “gurus” from hyping them as the next great currency to rise when the “global currency reset” happens. They seize on minor details, like some US banks carrying dong to exchange for dollars. But there’s a simple reason for this – more and more Americans are traveling to southeast Asia, including Vietnam. While dollars are accepted, shopkeepers will usually round their prices up when dealing with dollars, making items more expensive than using the local currency. It’s not part of any massive currency reset, it’s just tourism.
The dong is a viable currency to buy if you’re going to Vietnam. Other than that, it’s useless as an investment. The Vietnamese government might attempt to redenominate it again, but as we’ve discussed with the dinar, redenomination is not the same as revaluing – one is a real and legitimate technique to bring down inflation, the other is pie in the sky nonsense.
Indonesian rupiah
The rupiah is the currency of Indonesia, and while its pimping and selling are not quite at the level of the dinar or dong, don’t be shocked if it gets there. Way back in 1949, when Indonesia first gained independence, the rupiah traded for about 3.8 to one dollar. But hyperinflation hit almost immediately, and soon price controls had to be introduced. In the 70s, the rate was about 415 to the dollar, dropping even further going into the 80s. Despite Indonesia having a strong economy, the rupiah continued to drop in value, and crashed completely in August 1997.
In 2015, there was something of a gain, as money flowed into the country before its presidential election. But post-election, the rupiah crashed again, and hit a low of 13,000 to the dollar. Compare this to their value a year ago, which was 11710, and you have another currency that would have lost you much of your investment.
The country had vowed to redenominate the rupiah, but put that on hold while its economy stabilizes. In the meantime, unless you’re an experienced foreign currency trader (and chances are if you’re reading this, you’re not), stay away from the rupiah.
Zimbabwean dollar
Everyone likes a big number, and the bigger, the better. So it made news when Zimbabwae, hit with crippling inflation, introduced a 100 trillion dollar note, it made international headlines. It was also the beginning of the end for the currency, as in 2009, Zimbabwe announced they’d be phasing out their currency altogether, and relying on foreign currencies like the US dollar. The zim will become completely demonetized by the end of 2015, though there are unwelcome rumors that the country is experimenting with printing new (most likely much lower) denominations.
At this point, Zimbabwean dollars are worthwhile only as collector’s items. They literally are about to have no value as actual money, and the country is attempting to get the last notes out of circulation. This admittedly makes those 100 bazillion dollar notes valuable, and the highest ones go for around 20-25 bucks on eBay. But even then, the market is flooded with them. You’re not going to get rich off any money coming out of Zimbabwae. Nobody ever has.
Something else
The Chinese yuan, South Korean won, and various other Asian and Middle Eastern currencies are also mentioned as being the “next currency” to be revalued, despite nothing being the previous one. Chances are, it won’t happen, for both simple and complex reasons.
As always, be skeptical of anyone touting the benefits of buying large amounts of a cheap currency with lofty promises for the future. They’re almost certainly not true.
READ THE FULL ARTICLE HERE
It doesn’t take a degree in finance to tell you that this is false. Many actual financial experts have debunked the myth of the Iraqi dinar “RV,” and while gurus have been promising for years that the magical day where millions of dinars turn into millions of dollars was right around the corner, it’s not, it never has been and it never will be. Iraq’s economy is nowhere near being able to support an electronically traded currency with serious value, and it might be a decade or more before that happens.
Fortunately, the dinar scam looks like it’s finally abating. There are numerous, well-written pieces by people at Forbes, Business Insider and others presenting well-researched and logical information about why the dinar is about as worthwhile an investment as magic beans.
The Vietnamese dong
But just as scams like the “Omega Trust” and NESARA begat the dinar scam, it’s only a matter of time before the resources put into selling and pimping this worthless currency is put toward selling and pimping some other worthless currency. Which one will it be? Here a few different national currencies to be on the lookout for as the next great money scam:
Vietnamese dong
If there’s one other currency that dinar gurus love to sell along with the dinar, it’s the dong. Vietnam has a complex history when it comes to currency, one intertwined with the fractured history of the country. Both North and South Vietnam issued their own currency, both called the dong, in the 1950s. When Vietnam was united by the communist insurgency in 1975, the dong was also unified. It went through several redenominations, lopping zeroes off the inflated exchange rate with old currency exchanged for new. For decades, Vietnam struggled with inflation, counterfeiting, and the dong’s lack of value against other currencies.
Finally, in 2003, Vietnam introduced new notes that were harder to counterfeit, and it developed a new banking system designed to handle large transactions.
Even with all of these reforms, the dong is one of the most, if not the most, worthless currencies in the world. It currently trades for around 21800 to one dollar, and only in cash, not electronically. Like the dinar, you can buy them in cash from brokers working under the “money service business” loophole. Like the dinar, the dong is massively overprinted. And like the dinar, they take a massive cut, usually charging between 20 to 25% more than the value of what you’re getting. And finally, like the dinar, the dong has lost value in the past year, as it traded at 21175 to one dollar one year ago. Dongs are becoming less valuable, not more.
But that doesn’t stop “gurus” from hyping them as the next great currency to rise when the “global currency reset” happens. They seize on minor details, like some US banks carrying dong to exchange for dollars. But there’s a simple reason for this – more and more Americans are traveling to southeast Asia, including Vietnam. While dollars are accepted, shopkeepers will usually round their prices up when dealing with dollars, making items more expensive than using the local currency. It’s not part of any massive currency reset, it’s just tourism.
The dong is a viable currency to buy if you’re going to Vietnam. Other than that, it’s useless as an investment. The Vietnamese government might attempt to redenominate it again, but as we’ve discussed with the dinar, redenomination is not the same as revaluing – one is a real and legitimate technique to bring down inflation, the other is pie in the sky nonsense.
Stacks of Indonesian rupiah
The rupiah is the currency of Indonesia, and while its pimping and selling are not quite at the level of the dinar or dong, don’t be shocked if it gets there. Way back in 1949, when Indonesia first gained independence, the rupiah traded for about 3.8 to one dollar. But hyperinflation hit almost immediately, and soon price controls had to be introduced. In the 70s, the rate was about 415 to the dollar, dropping even further going into the 80s. Despite Indonesia having a strong economy, the rupiah continued to drop in value, and crashed completely in August 1997.
In 2015, there was something of a gain, as money flowed into the country before its presidential election. But post-election, the rupiah crashed again, and hit a low of 13,000 to the dollar. Compare this to their value a year ago, which was 11710, and you have another currency that would have lost you much of your investment.
The country had vowed to redenominate the rupiah, but put that on hold while its economy stabilizes. In the meantime, unless you’re an experienced foreign currency trader (and chances are if you’re reading this, you’re not), stay away from the rupiah.
The infamous Zimbabwean 100 trillion dollar note
Everyone likes a big number, and the bigger, the better. So it made news when Zimbabwae, hit with crippling inflation, introduced a 100 trillion dollar note, it made international headlines. It was also the beginning of the end for the currency, as in 2009, Zimbabwe announced they’d be phasing out their currency altogether, and relying on foreign currencies like the US dollar. The zim will become completely demonetized by the end of 2015, though there are unwelcome rumors that the country is experimenting with printing new (most likely much lower) denominations.
At this point, Zimbabwean dollars are worthwhile only as collector’s items. They literally are about to have no value as actual money, and the country is attempting to get the last notes out of circulation. This admittedly makes those 100 bazillion dollar notes valuable, and the highest ones go for around 20-25 bucks on eBay. But even then, the market is flooded with them. You’re not going to get rich off any money coming out of Zimbabwae. Nobody ever has.
Something else
The Chinese yuan, South Korean won, and various other Asian and Middle Eastern currencies are also mentioned as being the “next currency” to be revalued, despite nothing being the previous one. Chances are, it won’t happen, for both simple and complex reasons.
As always, be skeptical of anyone touting the benefits of buying large amounts of a cheap currency with lofty promises for the future. They’re almost certainly not true.
READ THE FULL ARTICLE HERE
Tuesday, March 8, 2016
Is The Zimbabwe Dollar A Bond?
Is The ZImbabwe Dollar A Bond?
Lately everyone seems to be claiming the ZImbabwe Dollar is actually some type of form of a guranteed government bond. This is news to me, but many people still seem to claim this.If you believe or have heard that the Zimbabwe Dollar is a bond please leave a comment below explaining this further and if possible leave a link to where it states this.
If the Zimbabwe Dollar AA 2008 notes are indeed a bond who are they backed by? The Zimbabwe Government? If that's the case that shouldn't inspire much confidence. Though Zimbabwe seeems to be trying to get their economy and country back on track it doesn't look promising.
Monday, March 7, 2016
Zimbabweans to be compensated fully as local currency is demonetized
HARARE, Feb. 23 (Xinhua) -- The Reserve Bank of Zimbabwe (RBZ) will
use the rate of one U.S. dollar to 35,000 Zimbabwe dollars as it moves
to demonetize the local currency and compensate account holders who lost
their savings when the government introduced multi-currencies in 2009.
RBZ Governor John Mangudya told Xinhua in an interview Monday that everybody who had an account as of December 2008 would be awarded a blanket five U.S. dollars per account regardless of whether or not there was any credit in their bank balances.
Mangudya's comments allay fears that had beset the banking public which suspected that the RBZ wanted to credit the accounts with only five U.S. dollars and disregard the balances in the accounts at the time of the introduction of the multi-currencies.
The Confederation of Zimbabwe Industries also issued a statement recently urging the RBZ to fully compensate account holders.
"The five U.S. dollars is the minimum but we're going to be using the United Nations rate of one U.S. dollar to 35,000 Zimbabwe dollars. We have revalued it from one U.S. dollar to 35 quadrillion dollars," Mangudya said.
CLICK HERE TO READ MORE
RBZ Governor John Mangudya told Xinhua in an interview Monday that everybody who had an account as of December 2008 would be awarded a blanket five U.S. dollars per account regardless of whether or not there was any credit in their bank balances.
Mangudya's comments allay fears that had beset the banking public which suspected that the RBZ wanted to credit the accounts with only five U.S. dollars and disregard the balances in the accounts at the time of the introduction of the multi-currencies.
The Confederation of Zimbabwe Industries also issued a statement recently urging the RBZ to fully compensate account holders.
"The five U.S. dollars is the minimum but we're going to be using the United Nations rate of one U.S. dollar to 35,000 Zimbabwe dollars. We have revalued it from one U.S. dollar to 35 quadrillion dollars," Mangudya said.
CLICK HERE TO READ MORE
Sunday, March 6, 2016
The Last Chapter In The ZImbabwe Dollar Saga
Here's an interesting fact. Remember all those worthless Zimbabwe paper
banknotes? The Reserve Bank of Zimbabwe (RBZ), Zimbabwe's central bank,
is officially buying them back for cancellation. According to its recent
monetary policy statement,
the RBZ will be demonetizing old banknotes at the "United Nations
rate," that is, at a rate of Z$35 quadrillion to US$1. Stranded Zimbabwe
dollar-denominated bank deposits will also be repurchased.
As a reminder, Zimbabwe endured a hyperinflation that met its demise in late 2008 when Zimbabweans spontaneously stopped using the Zimbabwe dollar as either a unit of account or medium of exchange, U.S. dollars and South African rand being substituted in their place. Along the way, the RBZ was used by corrupt authorities to subsidize all sorts of crazy schemes, including farm mechanization programs and tourism development facilities.
Upon hearing about the RBZ's buyback, entrepreneurial readers may be thinking about an arbitrage. Buy up Zimbabwe bank notes and fly them back to Zimbabwe for redemption at the RBZ's new official rate, making a quick buck in the process. But don't get too excited. The highest denomination note ever printed by the RBZ is the $100 trillion note. At the RBZ's demonetization rate, one $100 trillion will get you... US$0.003. With these notes selling for US$10 to $20 as collectors items on eBay, forget it—there's no money to be made on this trade. If you've already got a few $100 trillion Zimbabwean notes sitting in your cupboard, you're way better off hoarding them than submitting them to the RBZ's buyback campaign.
CLICK HERE TO READ MORE
As a reminder, Zimbabwe endured a hyperinflation that met its demise in late 2008 when Zimbabweans spontaneously stopped using the Zimbabwe dollar as either a unit of account or medium of exchange, U.S. dollars and South African rand being substituted in their place. Along the way, the RBZ was used by corrupt authorities to subsidize all sorts of crazy schemes, including farm mechanization programs and tourism development facilities.
Upon hearing about the RBZ's buyback, entrepreneurial readers may be thinking about an arbitrage. Buy up Zimbabwe bank notes and fly them back to Zimbabwe for redemption at the RBZ's new official rate, making a quick buck in the process. But don't get too excited. The highest denomination note ever printed by the RBZ is the $100 trillion note. At the RBZ's demonetization rate, one $100 trillion will get you... US$0.003. With these notes selling for US$10 to $20 as collectors items on eBay, forget it—there's no money to be made on this trade. If you've already got a few $100 trillion Zimbabwean notes sitting in your cupboard, you're way better off hoarding them than submitting them to the RBZ's buyback campaign.
CLICK HERE TO READ MORE
Saturday, March 5, 2016
Zimbabweans Are Starving Billionaires
Did you ever think you'd see a Billionaire or even a Trillionaire starving? Only in Zimbabwe. This sign though made out of jest shows that though their currency may have a lot of zeroes it's not worth much. Some other photos show how much Zimbabwe Dollars it takes just to buy a loaf of bread at the market, literally wheel barrows full of this stuff.
The Design Of The 100 Trillion Zimbabwe AA 2008 ZImbabwe Dollar
The main illustration on the obverse of banknotes issued from 1987 was the Chiremba Balancing Rocks in Epworth, Harare.
The rocks were used as a metaphorical theme to explain the importance
of development coupled with preserving the fragile environment.[6]
The rocks were part of the Reserve Bank's emblem, which was used for
all Bearer and Agro cheques, which circulated between 15 September 2003
and 31 December 2008. The reverse of dollar notes often illustrated the culture or landmarks of Zimbabwe.
Are The Gurus Right or Wrong About The Zimbabwe Dollar?
So why are several gurus saying it is going to RV and to buy buy buy???
‘No appetite to bring back Zimbabwe dollar’
RESERVE Bank of Zimbabwe governor John Mangudya last week said it would be careless to re–introduce the Zimbabwe dollar and the authorities had no such appetite because the current macro–economic fundamentals did not allow for such a move.
VICTORIA MTOMBA
BUSINESS REPORTER
Speaking during the unveiling of the bond coins on Friday, Mangudya said the country had no coins to buttress the US dollars and to import the USD coins is expensive.
“We can never be so careless to return to the Zimbabwe dollar. It is very simple. It’s easy for a country to start using foreign currency, but it is difficult to get out of it. So we won’t be careless to do so. We have no appetite to do so and no plans to do so,” he said.
He said 80% of transactions in the county are conducted with the United States dollars.
“It’s natural the coins will be utilised much more than the South African rand as people would want to get value for their money,” he said.
The bonded coins will be at par with the United State dollars and they can be exchanged for USD at the bank.
Mangudya said the coins came at time when most people in the rural areas were using barter trade as they did not have coins to transact with.
He said the adding of Chinese yuan, Indian rupees and Japanese yen into the economy has not been positive in the market.
“Alas, the demand for these currencies has not been high. The people prefer to us the United States dollars, rand and euros,” he said.
Mangudya said the central bank would not do anything about the low usage of the currencies because it’s a multicurrency system.
The country is expected to receive $10 million worth of bond coins between now and March which translate to 2% of total banking deposits.
Mangudya said the bond coins will be issued in 1c, 5c, 10c, 25c and 50c denominations. Mangudya said the 50c coin will be released in March next year due to the prerequisite features needed in the design and manufacture of the coin. The coins will be in circulation starting next week Thursday. Mangudya said in a functioning economy the proportion of coins to money in circulation should be between 20-25%.
https://www.newsday.co.zw/2014/12/08/no-appetite-bring-back-zimbabwe-dollar/
Which Zimbabwe Dollar Notes Should I Buy?
Which Zimbabwe Notes Should I Buy?
It seems everyone this month is rushing out to buy Zimbabwe Currency, but which Zimbabwe currency notes should you buy? Many people don't seem to know.Zimbabwe over the years has had several failed currencies. Prior to 2008 they had currencies in normal denominations however when hyperinflation started setting in they had to abandon those currencies and roll out larger notes. First the million series of notes, then the billion series of notes and finally the Trillion series of notes culminating with the largest note ever printed the 100 Trillion Zimbabwe Dollar note which was part of the AA 2008 series.
It seems everyone who wants to buy Zimbabwe Dollars is looking to purchase the 2008 AA series as it is referred to which are the 100 Trillion, 50 Trillion, 20 Trillion, and 10 Trillion denomination notes.
If you're looking to purchase Zimbabwe Dollars those are most likely the notes you are seeking. You can check the banner ads running on the top and sides of this blog to see what current prices are on eBay.
Friday, March 4, 2016
The Return Of The Zimbabwe Dollar Currency
Is there going to be a return of the Zimbabwe currency? Watch this video to find out. Will they roll out a new currency and new notes or return the AA 2008 Trillion series of notes. Only time will tell.
Zimbabwe Dollar Proof Of Revalution From Youtube
Zimbabwe Dollar - Revaluation update. http://globalcurrencyreset.net/zimbab...
http://globalcurrencyreset.net/situat... In my latest video I analyze statements made by the reserve bank of Zimbabwe and how they plan to no longer use the U.S. Dollar in country, which they have used since mid to late 2008. I also point to relavant Zimbabwe Currency News and discuss the Zimbabwe RV and whether or not you should invest in the Zim Dollar.
Related Video on Zimbabwe https://www.youtube.com/watch?v=iuwBy...
There are links to the various articles so you have proof that what I am telling you is the truth in relation to the Zimbabwe economy. You wanted an update on the Zimbabwe Situation, this is it, I hope you enjoy. Remember to comment below. Don't be afraid. Give this a thumbs way up so people can find it. I'm trying to inform everyone of the issues that still exist in Zimbabwe.
1:11 Zimbabwe Multicurrency Confusion http://www.bbc.com/news/world-africa-...
1:48 Zimbabwe says to abandon the U.S. Dollar for the South African Rand
http://allafrica.com/stories/20140728...
2:58 If the currencies are based on assets, why are you not buying assets?
3:15 Multicurrency To stay Chinamasa http://www.thestandard.co.zw/2014/07/...
4:57 Zimbabwe dollar has revalued - http://www.banknotes.com/zw.htm
6:27 Zim dollar coming back? http://www.dailynews.co.zw/articles/2...
7:47 Reserve Bank of Zimbabwe Official Website http://www.rbz.co.zw/
http://globalcurrencyreset.net/situat... In my latest video I analyze statements made by the reserve bank of Zimbabwe and how they plan to no longer use the U.S. Dollar in country, which they have used since mid to late 2008. I also point to relavant Zimbabwe Currency News and discuss the Zimbabwe RV and whether or not you should invest in the Zim Dollar.
Related Video on Zimbabwe https://www.youtube.com/watch?v=iuwBy...
There are links to the various articles so you have proof that what I am telling you is the truth in relation to the Zimbabwe economy. You wanted an update on the Zimbabwe Situation, this is it, I hope you enjoy. Remember to comment below. Don't be afraid. Give this a thumbs way up so people can find it. I'm trying to inform everyone of the issues that still exist in Zimbabwe.
1:11 Zimbabwe Multicurrency Confusion http://www.bbc.com/news/world-africa-...
1:48 Zimbabwe says to abandon the U.S. Dollar for the South African Rand
http://allafrica.com/stories/20140728...
2:58 If the currencies are based on assets, why are you not buying assets?
3:15 Multicurrency To stay Chinamasa http://www.thestandard.co.zw/2014/07/...
4:57 Zimbabwe dollar has revalued - http://www.banknotes.com/zw.htm
6:27 Zim dollar coming back? http://www.dailynews.co.zw/articles/2...
7:47 Reserve Bank of Zimbabwe Official Website http://www.rbz.co.zw/
What is Your Favorite Zimbabwe Dollar Note?
Zimbabwe Dollars Which Note Is Your Favorite?
It seems the most popular of the Zimbabwe AA 2008 Series of notes are the 100 Trillion, 50 Trillion, 20 Trillion and 10 Trillion.The 100 Trillion note seems to be the most sought after but which is your favorite? Leave a comment below and let us know.
ebay.to/1TxAhwI
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