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where can I trade US dollars for Zimbabwe dollars?

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Originally posted by: Special K
Also, is hyperinflation really such a terrible thing? If everyone is being paid 10x as much and everything costs 10x as much, has anything really changed, other than the inconvenience of keeping track of much larger numbers?
Click to expand...

Your savings decrease in value during inflation. Consequently who wants to sell anything when the money they'll be paid with would half dropped in value the next day?
 
Originally posted by: jmmtn4aj
Originally posted by: Special K
Also, is hyperinflation really such a terrible thing? If everyone is being paid 10x as much and everything costs 10x as much, has anything really changed, other than the inconvenience of keeping track of much larger numbers?
Click to expand...

Your savings decrease in value during inflation. Consequently who wants to sell anything when the money they'll be paid with would half dropped in value the next day?
Click to expand...

Presumably interest rates for savings accounts and bonds would rise accordingly. Check out the yields of US Tbills during the late 70's - early 80's.
 
Originally posted by: Special K
I'm confused - do the exporting businesses of Zimbabwe want ZW$ or not? The first quote says they do, but the second one says they don't. Does the government force these businesses to exchange their US$ for the government's printed ZW$, so the government can then turn around and pay off its debts in US$?

Also, is hyperinflation really such a terrible thing? If everyone is being paid 10x as much and everything costs 10x as much, has anything really changed, other than the inconvenience of keeping track of much larger numbers?
Click to expand...
I don't suppose it's forcing. But if you want to do business in a country, you have to use its currency.

If I wanted to run a business in the US, I'd need US$ to pay employees and bills. In the same way a business in Zimbabwe needs a supply of ZW$. If it's in the export business, it doesn't get them from its customers. So, it is forced to change foreign currency into ZW$ so that it can pay its staff, etc. Hence there is always demand for ZW$ in currency exchange.

However, as the devaluation of the ZW$ accelerates, so more and more innovative shenanigans are being pulled to try and avoid this. However, there's only a limit, as it's illegal in Zim to use foreign currency for domestic transactions.

Hyperinflation is a problem:
It prevents saving money. You can't put money aside for a rainy day, by the time you need it, it will be worthless. You must live hand-to-mouth - an illness, or other inabiliity to work, leaves you destitute.
You can't borrow money. No one will lend you money, if they have to be paid back in worthless money. The interest rate on a loan must exceed the inflation rate by a suitable margin. In hyperinflation, it is often difficult to quantify inflation figures, and therefore essentially impossible to choose an appropriate interest rate.
It's near impossible to run a business. Normal business stock control and accounting practices simply don't work. By the time invoices need to be paid, the money is worthless. Special strategies are needed to allow stock to be purchased, and for the business to be paid in meaningful denominations, remembering that there's no point in putting the money in the bank over the weekend, as it'll be worthless the next Monday.
As hyperinflations, are usually unpredictable, you cannot plan your finances in advance, as you know not what things will cost, and not what you will be earning.
 
What I'd like to see how expensive it is to purchase is $100 in Liberian dollars. Then, I can respond to those idiotic ads for the $9 $11 = $20 ads on television that say they're Liberian currency and will be sold at face value. "Yes, if I get 5, do you combine shipping? Wonderful. I'd like to get 5 please. I'll send you $100 in Liberian dollars to cover the face value that you're advertising. How much is shipping? Can I pay that with Liberian currency as well?"
 
Originally posted by: jmmtn4aj
Originally posted by: Special K
Also, is hyperinflation really such a terrible thing? If everyone is being paid 10x as much and everything costs 10x as much, has anything really changed, other than the inconvenience of keeping track of much larger numbers?
Click to expand...

Your savings decrease in value during inflation. Consequently who wants to sell anything when the money they'll be paid with would half dropped in value the next day?
Click to expand...

Well, then in the USA, it'd be wonderful. Just wait a month to make that mortgage payment, and with Zimbabwe's rate of inflation, pay off your entire mortgage with the equivalent of a loaf of bread.

(j/k about it'd be wonderful, but overall, inflation is better for borrowers than lenders, but it's bad for everyone, especially when it gets as bad as it is in Zimbabwe)
 
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