Republic of Zimbabwe is one of the poorest countries Africa and the world in terms of the development of the national economy and the life of the population and the richest in natural resources and a variety of flora and fauna - is located in the south of the "black" continent next to the famous Victoria Falls.
The current situation of Zimbabwe
There are several large national parks on the territory of this state, the country's bowels are rich in minerals, but despite this, the Zimbabwean economy is in a permanent crisis, the Zimbabwean currency has devalued so much that 100 and 500 trillion Zimbabwean dollar bills have already been issued. Despite the high birth rate, 80% of infants do not live up to 1 year, a huge number of people die from hunger and disease, not only having normal medicines, and sometimes even basic hygiene conditions and even clean drinking water. AIDS has become a serious scourge of this country - the citizens of Zimbabwe, with the loss of immunity, die from any serious diseases, there are a lot of carriers in this part of Africa.
A brief history of the republic
Zimbabwe gained independence later than most other African states - on April 15, 1981, when a political group led by Robert Mugabe announced the formation of a new country - Zimbabwe, having separated from Rhodesia. By that time, the national flag, coat of arms and the national currency of Zimbabwe were ready.
Most analysts come to the conclusion that this country gained independence early, it was not ready for this. Such freedom brought only suffering, bloodshed and deprivation to the people of this African state. Most of all, the leader of the ruling party, President R. Mugabe, is to blame. It is characterized by unpredictable and ill-conceived decisions, rigidity in their implementation, lack of predictive thinking during economic and political reforms, and bloody repressions (Operation Gukurahundi killed hundreds of thousands of citizens and was recognized as genocide by most Western countries). Such actions led to the fact that the national currency of Zimbabwe depreciated, turned the country's economy into ruins, made the majority of the population impoverished, and became the reason for the boycott of political authorities by most Western countries.
Most so-called reforms in the agricultural sector have undermined the economy. The meaning of these innovations was the confiscation of land, livestock and buildings of white-skinned farmers and their transfer to black landless citizens. Firstly, the land was not enough and could not be enough for 1 million landless peasants, and secondly, the new "peasants", lacking sufficient knowledge and technologies in crop production and cattle breeding, actually ruined national agriculture, which led to famine in cities and villages and brought down the national currency.
National Zimbabwean Currency
The currency of Zimbabwe - the Zimbabwean dollar - is currently known throughout the world. This situation of this means of payment is not caused by its reliability, stability or special security of banknotes. The Guinness Book of Records contains the fact of monstrous inflation, forcing the government and the Central Bank of the country to issue denominations of an increasing denomination, and citizens who have long been replacing wallets with weighty bags to take with them larger bags in which you can put more cash "waste paper". Experts estimate that if you use banknotes of a small denomination instead of toilet paper, it will be almost 250 times more profitable than buying it.
History of the inflation process
The Zimbabwean currency appeared on Independence Day in April 1981, and the first freshly printed banknotes of 1, 5, 10, 20 Zimbabwean dollars were presented by the new head of state along with the flag, coat of arms and anthem of the country.
The national currency of Zimbabwe was initially equated to the dollar of Rhodesia. For several years, the Zimbabwean currency has been balancing somewhere around the Rhodesian dollar. But after some time, the inability of the President of Zimbabwe, Robert Mugabe, to some reasonable economic and political activity became clear, which resulted in the collapse of the local economy, depreciating the local dollar. By 1995, inflation passed the threshold of 200%, and in 1997 the national currency of this republic was denominated at the rate of 1: 1000.
But it did not help. Due to the fact that the Zimbabwean government did nothing to correct the economic situation of the republic, inflation continued to rage, forcing the Reserve Bank of Zimbabwe to invent and issue banknotes of an increasing denomination at first, and then, realizing that decisive measures were needed, it forced a second monetary reform in 2008. The exchange was tougher: 1 new dollar was exchanged for 10 billion old dollars. The third denomination at an unprecedented rate of 1 to 1 trillion old dollars took place in early February 2009, and as usual, with zero result. The inaction of the Zimbabwean government this time contributed only to the abolition of the circulation of the national currency in the year of the third monetary reform.
Events of the last decade in the country
Since 2009, the national currency of Zimbabwe has been canceled, but in fact it has been circulating around the country, although its physical transportation and payment are associated with serious physical effort. Only for going to a cafe or restaurant you need to carry a suitcase with Zimbabwean dollars. Payment and use of foreign currency is allowed - Rhodesia dollars, South African rand, as well as freely convertible currencies - US dollar, Euro, Swiss franc, Japanese yen, pound sterling are in use. Recently, Chinese yuan and even ... Russian rubles are gaining popularity.
Until 2006, the Central Bank of the Russian Federation did not quote the currency of Zimbabwe. The ruble exchange rate, however, is now 1: 100. This means that the Zimbabwean dollar is approximately weaker than 100 times the ruble of the Russian Federation. The reason for this situation until 2006 was a complete lack of interest and demand, as well as the critical volatility of the national currency of the young African republic.
But how does the currency of Zimbabwe compare with the American dollar? Exchange rate to the US dollar, in accordance with the latest official quotations of the Reserve Bank of the Republic of Zimbabwe, 1:40 quadrillion local dollars. The banknote presented above is still the largest at face value - 100 trillion dollars of Zimbabwe.
Is there a way out. And what is he like?
The Republic of Zimbabwe is rich in minerals. On the territory of the country found oil, phosphates, iron ore, coal, as well as ores of lithium, chromium, copper, beryllium, tantalum, corundum, magnesite, tungsten, tin. Asbestos, barite, pyrite, fluorite, kyanite, and muscovite are also mined. There are reserves of limestone, apatite, emeralds, dolomites and other minerals. The nature of the country is exceptional due to the diversity of flora and fauna. On its territory there are several large national parks.
Since 1980, the authorities of the republic have embarked on the rejection of the services of foreigners, accusing them of centuries of exploitation of the people of Zimbabwe and its subsoil. In addition, the bloody reprisals of the current regime not only caused the economic sanctions of Western countries, but Robert Mugabe himself was recognized as a persona non grata in Europe. Thus, the country lost any access to modern technology and equipment.
Political and economic isolation forced the Zimbabwean government to seek new sources of technology, investment, and skilled personnel.It appealed to Russia and the PRC. Both countries, having met, have now developed detailed cooperation programs for this African republic, primarily aimed at joint development of minerals, as well as assistance in implementing social and environmental protection programs.
It is cooperation with China and Russia that will allow Zimbabwe to overcome existing difficulties, pull the country out of ruin, significantly improve the situation of the people of this state, and also return the lost authority to the authorities of this amazing and rich country on natural resources. And the national currency of Zimbabwe will also occupy a worthy position not in the Guinness Book of Records, but on international exchanges on all continents of the planet.
