Saturday, June 11, 2016

Ah, so desu ka? Why Zimbabwe is Importing Small USA Bills

Whenever we read of African countries in distress, the storyline is these people cannot govern themselves.  Hence USA has an Africa Command to … feel… command Africa I guess.

Keep in mind all of the leaders of these countries were educated at Harvard and Yale and Stanford and Oxford, so they actually use Anglo Hegemon methods, and get Anglo Hegemon results.
The Reserve Bank of Zimbabwe will import, largely, low dollar denominations to curb the incessant large scale outflow of US dollars This comes as the central bank is working on introducing bond notes, backed by a $200 million Afreximbank facility to bridge the cash and liquidity gap and also provide an export incentive to stimulate and grow the economy. RBZ foreign exchange control director Mr Morris Mpofu said large denominations such as the $50 and $100 notes appeal to people who are moving the cash out of the country.
Mr Mpofu said that this is largely because the dollar is attractive to international criminals and others who are hunting it while there is concentration pressure from the predominant use of the greenback as the transacting currency.
Ah yes.  The problem is not the stupid, anti-human capitalist policies they learned at Harvard, it is "international criminals."  Who spend a lot of effort in Zimbabwe. So the government has created a mess by its policies, and it will attempt to fix it by bringing in small denomination greenbacks.  Largely.
According to the RBZ's monetary policy, a total of $1,8 billion was taken out of Zimbabwe in 2015 alone through illicit financial outflows and together with the huge import bill, have worked to create the cash and liquidity problems.
No, the hegemony policies create liquidity problems by shutting out any free market in credit and currency.
"That is why, now, we are going to import small denominations; $1, $5, $10 and $20, which they cannot take out.
The $100 and the $50 (notes) are what they get attracted to and they ship it out (of Zimbabwe) anytime.
"(But the small denominations) they are heavy, they are bulky so it is not easy to carry them in a briefcase for purposes of moving huge amounts of money (especially much sought after US dollars out of Zimbabwe), Mr Mpofu said.
The only possible explanation is those "international criminals" are government leaders who wish to keep the dollars flowing, so they took took out  a $200 million loan more on the backs of Zimbabweans with the intent to skim it off to as it shows up on the radar screen.
The RBZ exchange control director was briefing Acting Japanese Ambassador to Zimbabwe Dabide Tsunakake who sought clarity on what he said were some of the fears among investors from Japan looking to invest in Zimbabwe.
The Japanese Ambassador asked for clarity, not hilarity.

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Anonymous said...

Most counterfeit bills are in denominations of $20, $50, and $100 so it makes sense that they import the smaller bills. For the most part, the mafia tends to leave the smaller denominations alone.