Zimbabwe's foreign exchange shortage and high deficit put the country in great danger. People seeking to preserve the value of assets have to choose between the scarce dollar, the "bond currency" just issued by the government last year, bitcoin, which is famous for its great risks, and various consumer goods.
Zimbabwe's commodity export prices are relatively high. According to the data provided by the website of the African Development Bank, Zimbabwe's exports decreased by 6.9% in 20 16. Southall, a sociology professor at the University of Witwatersrand, wrote that although the production of tobacco, Zimbabwe's main export commodity, has recovered, the quality of tobacco has declined, so the export profit is also at a low level.
Extended data
The causes of inflation in Zimbabwe:
1 and the land reform around 2000 were the beginning of decline. In 2000, the land was changed into violent land reform, and many veterans who fought the world directly seized it by force, and the original owners of the land could not get enough compensation or did not. The negative results of land reform are obvious. Violent land reform caused a long-term conflict between white farmers and blacks. Black veterans and black authorities will not farm effectively after acquiring large areas of land.
The government has been busy with party struggle for a long time and has no time to develop its own economy. First of all, in the1980s, there was an argument between ZANU and ZAPU. Around 2008, there was another election dispute between MDC and ZANU. Long-term party struggle, the government has no intention of economic and social development, resulting in bad consequences.
3. Many rounds of western sanctions have made Zimbabwe's economy worse. From 2000 to 2002, the Zimbabwean government implemented the "Rapid Land Reform Plan", requisitioned white land and resettled black farmers with little or no land, which led to unprecedented intensification of social conflicts in Zimbabwe.
Subsequently, the United States and Europe successively announced a series of sanctions against Zimbabwe. Specific measures include property freeze and travel ban for specific individuals; Such as sanctions policies related to international financial institutions; Such as intergovernmental restrictions on loans and development assistance and arms embargoes. Western economic sanctions have made Zimbabwe's domestic economy worse and worse.
4. Excessive currency issuance leads to economic collapse. Gono, the governor of the central bank, has no independence of monetary policy at all, and madly oversubscribes money to cater to domestic political needs. At the same time, we will realize the dual-track exchange rate system and control the official exchange rate. On the one hand, the Zimbabwean dollar depreciated rapidly and continued hyperinflation; On the other hand, the official exchange rate remains stable, resulting in a huge difference with the market exchange rate.
Baidu Encyclopedia-Zimbabwe