Zimbabwean currency

Discussion in 'Forex' started by streetfreak, Nov 17, 2007.

  1. I was reading an article in the Wall Street Journal about investing in Zimbabwe.

    Towards the end it mentioned that the Reserve Bank of Zimbabwe fixes the exchange rate at 30,000 Zimbabwean dollars to the U.S. dollar.

    The article points out that Zimbabweans do not put faith in that number or they'd quickly lose all their money.

    But, it then mentions that the current "Old Mutual Implied Rate" is 2,596,784 Zimbabwean dollars to the U.S. dollar.

    If a Zimbabwean hypothetically accepted a 30,000 exchange rate, wouldn't they grow richer, not poorer?
  2. Probably better reading what Marc Faber has to say about this.