Tuesday, April 22, 2008

Open Train Wreconomics

Redenomination

On April 14 Turkmenistan's President Gurbanguly Berdymukhammedov held a government meeting, which addressed the results of the first quarter of 2008 as well as the future strategy for improving the country’s socio-economic development.

In particular, a decree “On introducing the redenomination (changing the currency value) of the national currency of Turkmenistan” was adopted. The session also highlighted that a unified dollar exchange rate is scheduled to replace the state-controlled аnd commercial rates.

The next day the news caused panic among the Turkmen residents. Starting from May 1 (or throughout May) a new dollar exchange rate will allegedly be introduced. One dollar is expected to equal 10,000 manats whereas according to other sources one dollar will equal 17,000-18,000 manats. People rushed to the currency exchange offices to exchange their foreign currency savings. However, referring to a manat shortage, the exchange offices allow each person to sell up to 100 dollars at a time. In order to exchange as much cash as possible, people bring their relatives and friends. Huge hour-long queues have formed at the currency exchange offices.

Taking advantage of the boom and difficulties in exchanging foreign currency, illicit market traders yield cash by buying dollars at a rate of 18,000-17,000 manats.


Oh my God! Who would want to be a president of this country?

Today the Zimbabwean dollar is trading at $200 million to £1. Yes that's true, 200 million dollars for one British pound. Not at all surprising to most Zimbabweans. The Zimbabwean dollar as well as the whole economy has been on free fall, collapsing like a sand castle.

So who would want to be the captain of this sinking titanic? Unless one has a sound turn around strategy. So I'm surprised given the current state of affairs in the Zimbabwean economy some people still claim to be the best custodians of our economy. Given their track record in managing the economy they still want us to believe they are the best Zimbabwe have! Give us a break! They have failed us, why can't they just leave and let someone try and sort this mess?

So for every one pound you get 200 million Zimbabwean dollars?

In God We Trust!



(Now forming...the committee to N E V E R elect a President Clinton)
I am William "Papa" Meloney and I endorse this message.

2 comments:

  1. Anonymous7:44 AM

    Gee, it makes me feel so warm and fuzzy inside that we live in a country where our currency is solid and so highly respected around the world as the standard by which all others are measured. What's that, you say? Oh, nooooo...

    OK, let me rephrase that...

    ReplyDelete
  2. Haven't I read recently that OPEC(?) nations were going to move to the Euro?

    ReplyDelete

. . .