Zimbabwe Bashes US Dollar, Alligns With Yuan

Tyler Durden's picture

It was three short years ago that the small former British colony of Zimbabwe was spewing forth 100 trillion dollar bills. Since then, courtesy of a few trillion extra percent of inflationary RDA, the country had given up on its currency and replaced it with US Dollars. Now, the country's cult central banker Gideon Gono has made it clear he wishes to avoid another episode of transplant currency hyperinflation courtesy of his counterpart in the Marriner Eccles building and "has warned that Zimbabwe’s nascent economic recovery is at the mercy of the United States dollar, which is facing new pressures from the Euro-zone debt crisis." Yet the screaming sarcasm is the following: "Gono says Zimbabwe should in fact be looking to the Chinese yuan as its main currency, while urgently seeking to restore its own currency which was abandoned in 2009 after a dramatic loss of its value. With the continuous firming of the Chinese yuan, the US dollar is fast ceasing to be the world's reserve currency and the Euro-Zone debt crisis has made things even worse." And the terminal slap in the face of all that is American: "As a country, we still have the opportunity to avoid being caught napping by adopting the Chinese yuan as part of consolidating the country's look East policy." Well, if recently hyperinflating Zimbabwe is complaining about the US as being on the same path as itself, and instead wants to become a Chinese FX vassal state, perhaps alarm bells should go off somewhere. So the next time Tim Geithner is up on stage somewhere, it may be prudent for a question to be be asked: how and why is it that the world's (formerly) de facto banana republic is complaining that the next up and coming B-Rep is about to replace it in the annals of idiotic monetary policy?

From New Zimbabwe:

Speaking in Gweru last Saturday, Gono said: “The extraordinary happenings in Europe where economic power houses in the Euro-zone have been hit by a debt crisis deserves extraordinary measures, especially here in Zimbabwe where we have adopted the U dollar as the major currency in our multi-currency regime.


China is now Zimbabwe’s biggest trading partner, with the Asian giant absorbing most of the country’s mineral and agricultural produce.

Vice President Joice Mujuru first raised the possibility of adopting the yuan in September last year, saying it would be a “logical step” and could help solve some of the country’s liquidity constraints.


The multiple currency regime announced in January 2009 has been fraught with difficulties. Retailers are supposed to accept the Euro and the British pound but those two currencies have never caught on, with most transactions being conducted in United States dollars, the South African rand and the Botswana pula.


Finance Minister Biti presented his 2012 budget last week and expects the multiple currency regime to remain in place at least until the end of 2012 when ministers hope it would be replaced by a single currency for the Southern Africa Development Community (SADC).


Gono, speaking at theConfederation of Zimbabwe Industries' (CZI) end-of-year business dinner, said the use of foreign currency was ultimately unsustainable in the long run.


“As long as we continue to use other people's currencies, where we do not have control over that currency, we are not going anywhere as a nation,” he said.

So all sarcasm aside, perhaps someone should be concerned that while the US is enjoying the third year of endless political bickering and deciding if this political candidate or that has had enough illicit sex, while rapidly losing all foreign influence, China is quietly but forcefully taking over the world precisely in the way that the US did in the 20th century: by becoming a primary trading partner, regionalizing its currency, and finally, a step that yet to occur, establishing CNY-denominated debt.

Does anyone still doubt what the endgame is?

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homersimpson's picture

Wha? Zimbabwe doesn't like competition in money printing?

At least the US-built printing press lasts a lot longer than a Chinese-built one!

Ag Tex's picture

Nothing shows restraint in printing quite like a panhandling billionaires in Zimbabwe.

dlmaniac's picture

Funny how people think Chinese politicians are any more competent and trustworthy than Bush or Obama.

Seer's picture

Well, in China they execute folks who fuck up: or those folks know enough to execute themselves.  In the US when BIG folks fuck up they get praised.

As far as who is the US Court Jester (POTUS), it doesn't fucking matter.

Big Corked Boots's picture

Praised - and bailed out.

wisefool's picture
  1. predatory
  2. regulatory
  3. "I was forced to sell my 200MM stock without cap gains tax cause they made me become treasury secretary"
  4. Bailed out freinds.
  5. Man who saved the world.
  6. Esteemed fellow, Univeristy of chicago.
  7. ... go get your shine box krugman ... I think you left it at enron HQ.

Hank "Rocket Jump" Paulson

SilverRhino's picture

In China, they execute folks who get CAUGHT.  

in the US, they get promoted and bonuses.

thefedisscam's picture

Yes, that is so true. Yet, MOST of Americans think the U.S. of A. has the Best system in the world. LOL

trav7777's picture

uh, NO.

In China they execute people who cause TROUBLE for higher ups.

They do not CARE if you engage in fraud; the entire fucking NATION from top to bottom is all about fraud.  They do not care if you get "caught" either.  They ONLY care if you cause them to lose face.  THEN you get executed.  Or if you have something they want.

CPL's picture

It speaks volumes about voter disenfranchisement actually.


Like the ballot boxes matter anymore.  Sincerely, hanging chad. 

Charles Bishop Weyland's picture

POINT. MISSED. It doesn't MATTER if they're "more competent." What matters is who is still SOLVENT at the end of the day.

What matters is they HAVE A PLAN, and it's CLEARLY being executed, while we worry about ABORTIONS, gay rights, and who Lindsay Lohan is tonguing this week--they are POSITIONING themselves as a BETTER ALTERNATIVE TO OUR whole little fiat-based  popsicle stand: and it's not based on stupid-assed BULLSHIT like skin tone or religion--it's based on RESOURCES--AND WHO CONTROLS THEM.

"Welcome to math class. We're doing NUMBERS up in heah, son."

Chief KnocAHoma's picture

Zimbabwe? Who cares what that country of whores does? They change with the wind.

trav7777's picture


Rhodesia was a successful country, but we just...can't...talk...about...that, can we? 

RSA was similarly successful...seems that Africa isn't so inhospitable after all. Seems like it is mineral rich if you know what a fuckin mineral is useful for.  Kinda hard to do that if your average IQ is 70, you lack the written word, mechanical devices, and the frickin wheel.

Going Loco's picture

I was born in Nigeria. My Dad was in charge of agricultural produce marketing for the whole country for several years. Nigeria then was stable, prosperous, and had an exportable food surplus. Of course they kicked us out. Look at the friggin' place now.

Spastica Rex's picture

The US press was manufactured in Taiwan.

homersimpson's picture

I think you're confusing the press with the parts on NASA's space shuttle.

tekhneek's picture


I just can't stop fucking laughing.

I apologize if someone's already posted this months back but, I just found it and feel like Tyler should make it viral.

SteveNYC's picture

Bernanke is mortified. His hero no longer reveres in his worship.

Sofa King's picture

I thought the US printing presses were made in Germany.

Mister Ponzi's picture

Heidelberg Mainstream 80, Bitchez!

Freddie's picture

The Democrat's Muslim is using the same Zimbabwe & Mugabe template to wipe out the USA.  Democrat Jon Corzine is good buddies with the Muslim.

trav7777's picture

u give those negroes way too much credit for competence.

Charles Bishop Weyland's picture

...And the "black' people didn't do a THING to stop white men from fucking themselves(and our society) in the ass with their mindless greed: don't forget to blame'em for THAT too.But what have you got in mind to insult the little yellow motherfuckers (who will soon own the planet) with? They already KNOW what color they are--and they DON'T CARE.

...they JUST KEEP STACKING. And taking more squares on the big board.

 Math is cruel like that.

YawningChasm's picture

R U sure the US ones are not Made in Germany Heidelburg presses

Big Corked Boots's picture

Missed opportunity - should have gone with gold.

MrTown3's picture

saw Libya and decided against it?

Use of Weapons's picture

Tru story bro.



[Hint: USA Drone C&C down & on the ground in the big S brigade - I posted a link (African national paper - remember, when you're not owned lock stock n barrel, and your regime can barely police the major capital, you get good journalism some times) outlining the plays... a while back. ZH didn't pick it up, 'cause no-one is investing down there. Regional bias n all]

steve from virginia's picture

There was inflation in the gold trade in Zimbabwe even after the Zim-dollar collapsed. Nothing much to buy in Zimbabwe with any currency.

China actually in the grip of hyperinflation, Gono is as useless as Barton Biggs.

Zim is a naturally wealthy country but everything has been stolen by horrible government.

trav7777's picture

wasn't a problem when white people were in charge.

Oops, did I just utter a hate fact again? 

EscapeKey's picture

Right, as if the Chinese won't be forced into blatant monetization.

Fix it to Gold, or forget about it.

dereksatkinson's picture

This is why i'm not so gun ho about shorting the euro.  Our currency is just as screwed.

GeneMarchbanks's picture

' “As long as we continue to use other people's currencies, where we do not have control over that currency, we are not going anywhere as a nation,” he said.'

Tell Greece that. Better yet, tell Merkel.


FEDbuster's picture

Does it really matter which paper you use?  Single ply vs. two ply


Sokhmate's picture

3-ply works best for me.

DormRoom's picture

It hasn't ended well for the  last two countries (Libya & Syria) that sided against the Bank of International Settlement.  NATO no fly zone over Zimb next year

Mike2756's picture

Might as well, China owns Zimbabwe.

Manthong's picture

You have to admit though, it is a challenge to determine which financial system of the two is least immoral and corrupt.

eaglefalcon's picture

the chinese won't be happy with the decsion.  they wanted to blow their pile o dollars as fast as they, but zimbabwe wants to get paid in yuan instead