Author Topic: Zimbabwe: New 2 dollar coin  (Read 16134 times)

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Offline <k>

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Re: Zimbabwe: New 2 dollar coin
« Reply #15 on: October 04, 2019, 02:52:16 PM »
But who IS Eddie Cross?
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

Offline eurocoin

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Re: Zimbabwe: New 2 dollar coin
« Reply #16 on: October 04, 2019, 02:55:31 PM »
But who IS Eddie Cross?

Eddie Cross is a member of the Reserve Bank of Zimbabwe's Monetary Policy Committee, see the article to which Pabitra linked in his message.



Eddie Cross commented defiant on the press release of the government:

“It’s nothing new [what I said]. The president announced a few months ago that we will have a currency by November. The delays were because of printing otherwise it would have been introduced in September,” he insisted.

Offline <k>

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Re: Zimbabwe: New 2 dollar coin
« Reply #17 on: October 04, 2019, 08:36:58 PM »
Thank you.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

Offline Bimat

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Re: Zimbabwe: New 2 dollar coin
« Reply #18 on: October 21, 2019, 01:29:06 PM »
Zimbabwe’s cash-starved government prints new banknotes

20 OCTOBER 2019 - 19:17 KEVIN SAMAITA

Zimbabwe’s cash-strapped government has started printing new banknotes to ease cash shortages that have seen the few notes in circulation being traded at a premium on the parallel market.

Economists, however, warn that the printing of cash might further fuel hyperinflation that is now the second highest in the world after Venezuela.

Zimbabwe has been plagued by cash shortages for the past three years with most ATMs no longer dolling out cash.

Last week, the Reserve Bank of Zimbabwe (RBZ) said it had started printing higher denominated notes as part of its currency reforms following the introduction of a quasi-currency in June.

“I am not privy to the dates, but what is happening is that new notes will be available soon so that they meet the required cash demands. Obviously, these notes are going to be printed outside the country and this requires foreign exchange. That is all I can say at the moment,” RBZ's deputy director for finance and markets, William Manimanzi, told parliament’s budget and finance committee on Wednesday.

He could not give dates when the money will be available.

In an interview with Business Day on Sunday, Harare-based economist John Robertson warned the central bank against excessive money circulation that will drive up inflation.

“There are serious cash shortages at the moment, but the question is 'Will the government be disciplined enough if it starts to print more money?' They have to be cautious so that printing of money does not contribute to any further rise in inflation.”

Zimbabwe is experiencing its worst economic crisis in a decade, with inflation at more than 300%, while the country is also plagued by shortages of foreign currency, fuel, electricity and basic foods.

The country is also in the grips of a currency crisis as the local unit, which was at one time pegged at 1:1 with the US dollar, is now trading at 1:20 with the greenback.

Source: Business Live
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Online Figleaf

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Re: Zimbabwe: New 2 dollar coin
« Reply #19 on: October 22, 2019, 09:49:27 AM »
Bad idea to issue fiduciary banknotes when trust is not restored. They will be nice collector items.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline Pabitra

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Re: Zimbabwe: New 2 dollar coin
« Reply #20 on: October 30, 2019, 05:54:03 AM »

Online Figleaf

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Re: Zimbabwe: New 2 dollar coin
« Reply #21 on: October 30, 2019, 06:36:05 AM »
Just found out a very important detail. A Kenyan company called DPO has managed to develop a payment system in Zimbabwe that covers 80% of the population. In other words, the vast majority of the population does not need to accept a coin it doesn't trust. Perhaps the days of cash are even over in Zimbabwe.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline Pabitra

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Re: Zimbabwe: New 2 dollar coin
« Reply #22 on: October 30, 2019, 09:23:36 AM »
Peter,
I am afraid that I do not agree with you.
India also has a similar company which is an unicorn ( a unlisted startup with valuation above a billion USD)
See
Paytm - Wikipedia

But when the public has little faith in integrity or competence of people in power, cash remains supreme, especially coins.
See

By a 99.3% verdict, India's cash ban was a farce



Offline eurocoin

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Re: Zimbabwe: New 2 dollar coin
« Reply #23 on: October 30, 2019, 09:38:44 AM »
The new money, consisting of 5-dollar notes and 2-dollar coins, will be introduced gradually to avoid driving up inflation, Mangudya said. It will circulate alongside the bond notes and coins introduced in 2016 as a surrogate for U.S. dollars, which the country was then mainly using in lieu of its own currency.

"For a start, we thought of being conservative (in introducing low denomination notes and coins) and we will graduate with time,” Mangudya told reporters after a two-day monetary policy committee meeting.

So possibly later more.

Online Figleaf

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Re: Zimbabwe: New 2 dollar coin
« Reply #24 on: October 30, 2019, 03:03:35 PM »
I am afraid that I do not agree with you.

That is your right, but it your reasoning is flawed. India is not Zimbabwe. On the contrary. One of the biggest differences in the area of payments is of course that Indians do trust government issued money, while in Zimbabwe, people don't. The consequence is that, economically speaking, the fees for electronic payments serve a different purpose. In India, the fees pay for convenience.

In Zimbabwe, they are the equivalent of an insurance premium as well as a payment for convenience. In India, your willingness to use electronic payments depends on how you value your own time. In Zimbabwe, it is mainly a function of the level of your distrust of government-issued money and the convenience is a bonus. So if people don't have confidence in government-issued money, they will use foreign currency and electronic payments more, not less, because their government is not involved in either. The other way around just makes no sense.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline Pabitra

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Re: Zimbabwe: New 2 dollar coin
« Reply #25 on: October 30, 2019, 04:54:15 PM »
We may be moving away from the thread but lot of people in India too, do not believe in govt. issued paper currency. They feel that coins are metal, whose intrinsic value increases in worth with time whereas its face value becomes lower than intrinsic value.
It is precisely for this reason that south East Asian region ( India, Bangladesh, Sri Lanka) continue to have stainless steel coins whereas usual trend across the world is go for plated steel coins ( whose metallic worth is almost zero or low enough so as to be "un"recyclable.

See

When a man bought Honda Activa by paying ?83,000, all in coins

Online Figleaf

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Re: Zimbabwe: New 2 dollar coin
« Reply #26 on: October 30, 2019, 05:03:38 PM »
Each country has its fair share of ... uhhh ... intellectually challenged people who have drifted to some extreme position on something on the basis of e.g. a rag "newspaper" article or an alcohol-induced epiphany. You cannot judge a country by such people. In the short time I was in India, I spent Indian banknotes in all parts of India. Nobody ever hesitated to accept them. The posts in this thread show clearly that the situation in Zimbabwe is quite different.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline Pabitra

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Re: Zimbabwe: New 2 dollar coin
« Reply #27 on: November 01, 2019, 04:15:35 AM »
Peter,
Could you explain
1. If cashless working is so successfull in Zimbabwe and India, what is the need for introducing physical currency in Zimbabwe and why cash in circulation has rapidly increased back in India, after the govt. action to reduce it?

2. Why Sri Lanka switched back to stainless steel coins, after a trial with Nickel plated steel coins and why the subcontinent prefers stainless steel coin unlike most of the rest of the world?

Online Figleaf

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Re: Zimbabwe: New 2 dollar coin
« Reply #28 on: November 01, 2019, 09:23:43 AM »
1. As explained above, Zimbabweans do not trust their government and do not trust government issued money. In other words, if you want to buy something in Zimbabwe and offer cash, you risk a refusal. If you offer a credit card, all will be well.

2. The homo economicus theory says they will have selected the cheapest solution. As you know, this theory is hardly fool proof. The reason could be anything, for instance hardness of the metal in relation to minting technology, capacity to plate without flaking or (expected) price developments. I am not privy to the results of the tests. Maybe you can ask the mints?

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline Pabitra

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Re: Zimbabwe: New 2 dollar coin
« Reply #29 on: November 02, 2019, 03:27:00 AM »
Regarding 1, this article may add some more and make you revise your theory

https://qz.com/africa/1739416/zimbabwe-brings-back-zim-dollar-and-the-limits-of-mobile-money/

Use of electronic payments ( credit card or now mobile / internet payments) requires extensive infrastructure as well as availability of end point equipment.
That may not be available or reliable.
If end point equipment is used only for economic transactions then its cost per use may be too high for each transaction.

Regarding 2, the high inflation in these nations cause demise of lowest denomination in as low as 5-7 years.
If the return of unwanted coins is handled by central bank then cost of recycling is too high.
Alternately, the government declares the denomination as no longer legal tender or in simple words, permits private melting of coins. Then at least, some useful alloy is recovered at small scale level and unusable coins are not handled by central bank at a very high cost.