, 11 tweets, 10 min read Read on Twitter
Characteristics of Money, #ZimCurrencyDebate THREAD.
For a country which is OPEN FOR BUSINESS (@edmnangagwa) and want to tell the world that ZIMBABWE IS A GOOD BUY (@MthuliNcube ), we have to understand and conform to the 6 characteristics of money/currency. 1/10
I remember #Mangudya was asked a simple question on international TV, "how would the investor in Zimbabwe repatriate his profit?" The Governor struggled to answer, becoz he wasn't prepared for a basic question on whether Zim's currency met the basic characteristics of money. 2/10
There are 6 characteristics of money : durability, portability, divisibility, uniformity, limited supply, and acceptability. All of them are very critical. But how do we use the characteristics of money to our advantage for successful business & national development? 3/10
Durability: of money is such that it can be used over and over again; hence it must survive wear and tear for long periods. Though we now have online transactions, it's important that the notes and coins are durable and clean. 4/10
@nelsonchamisa @edmnangagwa @nickmangwana
Portability: money should b easy 2 transport as people travel. Remember the days of traveling with a wheelbarrow to buy a loaf of bread? Remember the Gono Sunrises & chopping of zeroes? Imagine how much one needs to carry now in cash for an iron? 5/10
@SlymediaproTv @zimlive
Divisibility: money must be easily divided. This is why money is supplied in different and lower denominations. Just to bring the point home, when Bond Coins and Notes were introduced, we were told that it's just to allow for change (divisibility). The rest is history. 6/10
Uniformity: calls for a standardization of money so that it looks the same. A $5 should be easily recognizable. When money is designed, this uniformity should be maintained and built in the security features. By the way, designing and printing of money is huge business. 7/10
Limited supply: money is valuable if limited in supply. Only a limited quantity of money should be in circulation to maintain its value. I have to hasten that the printing of money by RBZ under Gono remains one of the key causes of hyperinflation and demise of #ZimDollar. 8/10
Acceptability: money /currency must be acceptable. A currency is only acceptable as a legal tender if consumers, business, and the general public have confidence in the issurer, or govt. This is where the issue of trust, confidence and legitimacy comes in. 9/10
The challenge for ED is that he can't force economic agents to trust him. Trust cannot be commanded. Remember the new currency will be written "I PROMISE TO PAY THE BEARER ON DEMAND.....". Confidence in ED & his gvt is on all time low. RBZ is not trusted at all 10/10
We argue here that WITHOUT trust, confidence or legitimacy, the #ZimCurrency will be stillborn.

Tomorrow we will continue with the functions of money, looking at how the Gvt of #Zimbabwe has violated these economic principles.

@XixuXaxa @Panashe468 @CdeNMaswerasei @freemanchari
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