Just two years ago, the nation of Zimbabwe created a hyperinflationary economy that led to the creation of a $100 Trillion note for its citizens to be able to purchase food. On May 15th however, this African nation is now speaking out on the US dollar, and advocating that its days are numbered as the global reserve currency.
Adding itself to the growing number of countries seeking an end to dollar domination, the central bank of Zimbabwe is calling for a gold backed currency, similar to the discussions that took place two weeks ago at the BRIC conference.
The central bank says the country must consider adopting a gold-backed Zimbabwean dollar warning that the US greenback’s days as the world’s reserve currency are numbered.
Government ditched the Zimbabwe dollar in 2009 after it had been rendered worthless by record inflation levels and adopted multiple foreign currencies with the US dollar, the South African Rand and the Botswana being the most widely used. – New Zimbabwe
Establishing a gold backed currency in your own nation is a sound way to create a solid, recognized currency that is accepted internationally. After the fall of the Zimbabwe dollar, the country has been functioning economically using a hodge-podge of US dollars, Euro's, and the South African Rand to name a few. This provides them with more stability than they had with their previous currency, but leaves them subject to the inflationary problems of those nations, and less control over their own economy.
With Zimbabwe's call for a gold backed currency, the list of nations seeking to move away from the US dollar is growing. Already, a number of countries such as China, India, and Venezuela are already utilizing other currencies for international transactions, and this includes by-passing the dollar in the trading of oil.
For Zimbabwe, who just two years ago was the world model on economic and montary destruction, and hyperinflationary chaos, is now finding itself on the opposite end of the US dollar, and calling for a change from this global currency to a new gold backed money system.
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