SlappySquirrel: Hmmmmm,A monetary reform step for.... Zimbabwe? ? (see article below)
Lower denomination bond notes for the Citizens in country. Yes liquidity was a huge problem in Zimbabwe as well, these steps should help alleviate those issues . Valued at 1:1 with our dollar.
Imo..they are only telling us half of the story. What will become of the trillion denomination notes we have?? They aren't telling us but I do remember distinctly maybe about a year ago the Government of Zimbabwe asking all citizens to exchange their trillion size zim notes for American cash...
Basically vacuuming all the big denominations off the streets. It was all over reuters news and even showed a young Zimbabwe child holding a 100 trillion zim note.
Why would the government ask citizens to exchange all those trillion notes about a year ago?? Sound familiar to the monetary reform steps of another country??
Jay: I agree SlappySquirrel. Makes you wonder how long it will be before it is exchangeable for the holders of Zim. If at all.
I wish we knew. LDs being released and 1to1?...WOWZERS. THE ONLY THING that makes no sense is there is no mention of the older currency having any value.
Are they still and or continuing to use MCPs now that these LDs are coming out? If they are doing it in a way anything like Iraq the LDs CANNOT be introduced while using MCPs. Imo.
Wish we knew.
SlappySquirrel: If they are making Monetary Reform moves in Zimbabwe, other countries could be doing the exact same thing ...which leads me to believe they will not allow a massive double dipping scenario to occur.
To exchange into millionaires and then re-exchange to become billionaires sounds unreasonable. At least if I was Christine Lagarde..Will there be other moves to make on currencies? ? Yes absolutely.. But as far as zim, dong and dinar I see all those RV'ing at same time to avoid massive double dipping...imo of course.
Jay: I agree
Stranger: I think Frank has hinted that they don't have the infrastructure, political climate or development and are a long way off (years). Iraq took a lot of steps and 13 years to get to where they are. I wouldn't be surprised if the pre-bond notes issued presently are trash. That being said I hope and pray I am wrong!!!!!! imo
Jay: Also Quite possible. But they are releasing LDs tmrw and @ 1 to 1. The peeps like the $ so much that if these bonds are valued on par with the $, that is loved sooo much then I see no reason why it would fail. IMO.
All past attempts never had value on par with the USD. That is the game changer IMO.
Time will tell.
SlappySquirrel: Imo, Those bond notes in country are a great thing for Zimbabwe..progress, reform, action....
Those LD bond notes only apply to in country, and wouldn't have anything to do with a rate on these trillion size Zim notes we hold.
Possible scenario the Gov. Of Zimbabwe issues a time period to redeem the rest of the trillion size Zim notes, then they will consider them void/ unusable.
Hopefully we international investors will get some kind of window to exchange those notes. A few months or something.
I believe the whole monetary system of the world is undergoing drastic changes with digital currency, Baseline 3 etc. And if countries like Zimbabwe want to make money in the new system they have to play by the new rules as well. The days of hyper- inflated currencies will be coming to and end...
I could be off on some of these points, just going with my gut instincts. ..God bless you today Family..........Be sure to spend time with God today...
Zerb: slappy if i may piggyback....IMO you hit a bulls eye regarding The monetary system going through drastic changes! this whole monetary reform has nothing to do with Iraq based upon the US treasury articles and the GE article regarding block chain for healthcare this is all related to the GCR. keep your eyes on 1st qtr of 2017....I just don't want you all to be disappointed I'd rather I be wrong and we see an IR IN 2016. let's wait and see what goes on after the inauguration. remember they can do whatever they want IN country before THEY release it to the world IMO....
WaymakersKid: IMO…..It Means......WOOHOO!!! It's HALLELUJAH TIME!!!! Iraq about to go...Zimbabwe busting out...Vietnam ready to Jump! I'm packing for overseas trip!
Samson: Zimbabwe - BOND NOTES OUT . . . Reserve Bank sets cash withdrawal limit
November 27, 2016
Tinomuda Chakanyuka, Sunday News Reporter
THE wait is over! The much talked about bond notes will start circulating on the market tomorrow in denominations of $1 bond coin, $2 and $5 notes, the Reserve Bank of Zimbabwe has said.
In a statement yesterday, the RBZ said the bond notes would be released into the market through normal banking channels.
RBZ said no new accounts would be opened for the bond notes as they would be deposited into existing US dollar accounts.
The notes will come in small denominations of $2 and $5 to fund export incentives of up to five percent which will be paid to exporters of goods and services and Diaspora remittances. RBZ said the initial release of bond notes will be in an amount of $10 million.
According to the specimen of the notes released yesterday, the $2 bond note’s main features are the three balancing rocks and the picture of the Zimbabwe Parliament Building and the Independence torch on the other side. The $5 bond note has the three balancing rocks while the other side has three giraffes. The $1 bond coin looks like other coins already in circulation except that it has a gold circumference.
Some of the other features include the optically variable ink, tactile marks for the visually impaired, latent image and see through perfect register. The bond notes also have the Zimbabwe bird watermark.
The central bank said in line with its thrust to promote a cashless society through the use of plastic money, the withdrawal limit of bond notes have been set at a maximum of $50 per day and a maximum of $150 per week.
“This measure is in tandem with the objective of the Bank to release bond notes into the market on a measured basis which is critical to mitigate against abuse of bond notes,” reads the statement.
The use of bond notes within the multi-currency exchange system which are anchored on the $200 million facility will operate along the same lines as bond coins, pegged 1:1 to the US dollar. RBZ said retailers, fuel companies and other businesses had agreed on the use and acceptability of bond notes as a medium of exchange.
“The Reserve Bank has engaged and agreed with the Retailers Association of Zimbabwe, fuel companies, representatives of the various business associations and the Consumer Council of Zimbabwe on the use and acceptability of bond notes as a medium of exchange in the country,” the bank said.
Members of the public have been encouraged to report any form of abuse of bond notes. According to the gazetted RBZ Amendment Bill 2016, anyone who may choose to inflict any form of damage on bond notes could face up to seven years in prison.
“The Reserve Bank would like to request the public to report any form of malpractice and abuse of bond notes including but not limited to hoarding, defacing, disfiguring or unlawful use of notes and manipulation by person or banks or currency dealers or traders in connection with the use of bond notes,” said the RBZ.
Bond notes come at a time when the country is facing a serious liquidity crisis owing to a number of situations, among them externalisation of the United States dollar. The notes are expected to ease the cash crunch which has seen some banks limiting daily cash withdrawals to as little as $20.
RBZ earlier this year said $1,8 billion was externalised in 2015, a development that worsened Zimbabwe’s liquidity challenges.
That necessitated stringent measures that included restrictions on the amount of cash that can be taken out of the country at any given time to $1 000 per an individual.
Nadita: that is a rate of 4 dollars per dinar... correct me if I am wrong, I believe there was an article saying that Iraq will receive 2.5B loan next month : 1B from WB, 800M from private sector and 700M from IMF. I believe the loans quoted in articles were in USD
Upstart: Hmmm, I don't see how you get $4.00, but it suggests 1:1. We've seen erroneous translations before, confusing dinars and dollars.
The articles refer to the loan amount as being for $4Bn / 4Bn IQD .... So, the question on my mind is whether this is a translation error or, have they let it slip ?
Walkingstick: Iraq receives four billion dinars as a loan from the World Bank next month
Economic Adviser to the Prime Minister revealed the appearance of Mohammed Saleh, Sunday, that Iraq will receive four billion dinars as a loan from the World Bank, the start of the month of December next.
Saleh said, L / balance News /, that "Iraq will receive four billion dinars as a loan from the World Bank loans of the seven major industrialized nations and the European Union, the start of December next."
He said economic adviser, said: "The loan is allocated to support the general state budget for the purposes of investment projects, which include support for various projects, including vital infrastructure destroyed and the rehabilitation and reconstruction of the affected areas," .anthy 29 / A 43 areas
Saleh: Iraq next month will receive a $ 4 billion loan from the World Bank