I read in Jeune Afrique economique (February edition) that Zimbabwe
authorities forgave the USD dollar and adopted the chinese Yuan as
national currency.
This should be the proof that the worldwide
currency market is not fair. In fact, on that market any currency is
like an item to be bought or sold. So, if your currency is boosted by
the exports of your country, your public treasury will receive a lot of
non-national currencies. So, the more non national currencies you will
have in your central bank, your currency will be more stronger compared
to others... I tried to simplify, but, in the reality, it`s complex
because you have to add gold stock,... Since my purpose is to help
anybody to understand some complex economic concepts, I will not go
throuh details here...
However, as you know, Zimbabwean
economy is mainly based on traditional exportation's, And the prices of
it`s products sold are not between it`s reach... Maybe, Zimbabwean
authorities choose the yuan because now they mainly depend on chinese
exports... that decision is very technical and strategic....
Now, I believe you can understand why the nigerian naira value is low on the worldwide currency market...
Hope
this will help to understand that behind some strategic and important
decisions, there are some technical fundamentals to be considered.
By
the way, in my next posting, I will detail why the south african rand
is going down since a couple of quarters and why the Kuwaiti dinar (in
Persian Gulf) is the strongest non national currency around the world.
Thank you
Le Tirshata
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