Zimbabwe to tame inflation with gold coins

Kitco ^ | 7-5-22 | Anna Golubova

[dynachrome]

Inflation was officially 192% in June.

[ProtectOurFreedom]

So essentially a return to gold standard and away from from fiat currency.

[dynachrome]

“Zimbabwe also revealed plans to adopt the U.S. dollar as legal tender for the next five years”

2nd time they will have done this.

[Rebelbase]

A sounder move than their last attempt at taming inflation with paper money.

[PapaBear3625]

There’s one sure way to control inflation: stop printing money. The government needs to stop spending in excess of tax revenues, and fire excess government employees.

[Mr. Lucky]

Not unless Zimbabwe paper currency is convertible to gold, which it won't be.

[jimwatx]

I imagine that these gold coins will become popular especially with Zimbabwe citizens as a way to protect their wealth considering how high their inflation rate is. I get the feeling that both gold and silver will soon become popular again everywhere.

[AZJeep]

That’s actually great news for Zimbabwe.
192% means that prices only tripled from the last year.
After going through hyperinflation, Zimbabwe prices are getting stabilized!

[bak3r]

Sounds like they are not too far away from getting invaded for “democracy” and “LGBT rights”.

[ProtectOurFreedom]

"According to the central bank's governor John Mangudya, gold coins can be bought with local currency, the U.S. dollar, and other foreign currencies."

How is that NOT convertibility from Zimbabwe paper currency?

[ArcadeQuarters]

> 192%

We can catch up!

[Caipirabob]

This is zimbabwe so one is compelled to ask what the “gold” is made of.

[unixfox]

“Zimbabwe also revealed plans to adopt the U.S. dollar as legal tender for the next five years”

In the direction we are heading, ours will be worth as much as Zimbabwe's.

[Dilbert San Diego]

Can’t they just give every citizen there a 100 trillion dollar note, declare everyone is a zillionaire, and say crisis is over??

sarcasm.

[dynachrome]

Chinese tungsten, probably.

[SaveFerris]

I could be a multi-billionaire!

(In Zimbabwe dollars)

How actual cash do I need?

🤔😆😜

[SaveFerris]

Is that the rock creature from Galaxy Quest?

It has always looked like that to me.

[KarlInOhio]

The value of the hundred trillion dollar bills has gone up a lot. It would have been a great investment to have bought a stack of them when issued and sell them individually on eBay now. The biggest risk was if that wasn’t the last one and the quadrillion dollar bill ruled the resale market.

[InterceptPoint]

How is that NOT convertibility from Zimbabwe paper currency?
+++++
Convertibility just means you can buy the coins with Zimbabwe money. It does not mean the Zimbabwe currency has a gold reserve that backs their currency. They do not have that.

[enumerated]

It’s not “gold backed” unless the face value of the currency is fixed to a certain weight of gold, and you can always trade it in for that amount of gold, regardless of what gold is trading at.

Just allowing them to buy a one ounce gold coin with the paper currency doesn’t make it gold backed. For example, we are allowed to buy one ounce gold coins with our paper currency - does that make the US$ gold backed? No!

Our silver certificates were “silver backed” because we could exchange a one $ silver certificate for a silver $, which was one ounce. The Federal Reserve notes we have today are nearly worthless by comparison.