Can the rand save Zimbabwe?

[Sneeky]

2 articles, the first is about the options and the risks should there be a rescue plan of sorts for Zim involving the rand. I found it very interesting.

Can the rand save Zimbabwe?

For instance, when East Germany joined West Germany, and DDR marks were exchanged for deutschmarks, the rate at which the exchange was made was very favourable to the east Germans. The west Germans, collectively, paid a fortune and many economists attribute the economic pain Germany suffered after unification partly to this issue.

Let us be warned.

Of course, Zimbabwe is already in an extremely dire position, and because of this, we ourselves are threatened. The potential economic effects of a currency union need to be evaluated in this light: no option is easy. One cannot help feeling that things would have been simpler if our government had handled this situation with more foresight and diligence a few years ago when it first arose.

Our foreign affairs department have their collective heads in the sand like ostriches when it comes to issues like this, sadly.


The second just shows that history has a habit of repeating itself
Like a dog that returns to its vomit

In Proverbs 26: 11 King Solomon makes the timeless observation that “Like a dog that returns to its vomit is a fool who repeats his folly.” He might have said that a fool who repeats the folly of others is like a dog returning to another dog’s vomit. This seems to be what is happening in Zimbabwe under Robert Mugabe’s administration.

Wonder how long the excuse of 'it's the Breetish' is going to fly before they try and lynch him or will he end up living a life of luxury in Camps Bay, paid for by the South African taxpayer?

 

[vespax]

Where's his house in Camps Bay? Can we locate it on Google Earth and we can all throw eggs at it when he comes to die in his 'golden years'.

Of course, those eggs could help the Zim people more...

 

[lion_fish]

Extending the Rand into Zimbabwe will only lead to one thing... the Rand crashing like the Zim dollar.

Im off to go buy Gold Kruger rands....

 

[pope24]

It is actually very simple. There needs to be a channel opened for secure foriegn direct investment to boost Zim' s reserves. The industries that have been damaged by the Mugabe Regime have to be given a cash injection to get them back on their feet. A fund needs to be set up to ensure that there is food for the people to eat and petrol to run the transport system.
And finally the zim Dollar needs to be replaced with a rand pegged New Zim Dollar to provide a level of financial security in the short term.
This could be the opportunity for the establishment of true open market in Southern Africa, and they don't come along all that often.

 

[Mike_De_Lange]

Why would/should we help Zim? Let them burn and run the country futher into the ground! Nuke gay Zimbabwe for Jesus!

 

[Syndyre]

Why would/should we help Zim? Let them burn and run the country futher into the ground! Nuke gay Zimbabwe for Jesus!

Because if we don't how many million people are going to come streaming across the border and cause problems here?

 

[Sneeky]

Because if we don't how many million people are going to come streaming across the border and cause problems here?

To late for that, they are already here getting their 'legal' sa documents from the upstanding folks at home affairs in droves.

 

[Syndyre]

To late for that, they are already here getting their 'legal' sa documents from the upstanding folks at home affairs in droves.

True but unfortunately it can still get worse...

 

[Sneeky]

Very true

 

[Moederloos]

Using the Rand to help Zim will lead to a crash for the rand.
People will hear "Zim and Rand" in the same sentence and avoid the Rand like the plague.

Whether or not it makes economic or financial sense is immaterial - sentiment is what counts.

 

[rwenzori]

2 articles

Fascinating reading - thanks.

 

[TELESPHORE]

Until Mugabe is rejected by SA as a Despot and forced to resign or kill himself, there is no hope for Zimbabawe

 

[TELESPHORE]

Using the Rand to help Zim will lead to a crash for the rand.
People will hear "Zim and Rand" in the same sentence and avoid the Rand like the plague.

Whether or not it makes economic or financial sense is immaterial - sentiment is what counts.

The Rand shall not crash, but BOB would continue to destroy everything by state possesion with SA Rands. Then we all have even more blood on our hands, worse that Apartheid ever could be.

 

[TELESPHORE]

In fact it has already surpassed Apartheid by 400%