submitted over 5 years ago by ron1994
- Recently, a southern African country replaced its old currency peg with a new transitional currency called the RTGS dollar, which has a lower value.
- To support this change, the country's central bank borrowed money from various institutions, including the African Export and Import Bank and Mozambique's central bank.
This recurring financial crisis that have plagued Zimbabwe has literally gotten worse. Some days ago, i read about the diamond-rich Botswana trying to make a deal on borrowing them some millions of dollars and now they are really going to borrow $985million? WTF!!!
I see mismanagement and misappropriation of funds as an issue in that country most especially the new rule by their country's president which suggests them killing their elephant as can pet food... A wildlife means that in its own stride serves as a major tourist center to the country. Things have to be looked into here. My take.
Zimbabwe might just collapse and become a non-state if things continue as it is. They can't keep running around borrowing to keep the economy afloat like this. When the IMF and World Bank can't borrow the country money because they are in arrears running to billions, then there's a problem. I only hope the structure of borrowing and repayment from African banks works out in the long term.
I suppose this is a good thing because I'm skeptical of the World Bank and the IMF. They seem exploitive of third world nations, but then again, I've never known any banks that look out for anyone's interests but their own. Sure, banks aren't charities, but that doesn't mean they have to be predatory as many are.