Zimbabwe Produces Funny Money

The Zimbabwe Central Bank has introduced a new form of money in an attempt to alleviate the desperate shortage of cash in the country.

A previously unknown and officially sanctioned financial instrument called a "bearer cheque" has been launched and copies have started to be dispensed from bank machines across the country.

The cheques are printed on banknote paper, look like banknotes and are described as being as "good as cash".

An anonymous senior Harare bank executive describes the new cheque as "an invention. I have never heard of it before. For a central bank to issue something called a bearer cheque is probably unique." The stop gap measure has been caused by what the government has described as "hoarding" but the above source goes on to say that, "With inflation now at 427 percent, it means that five times as much cash is needed now than a year ago.".

Zimbabwe has been classified by the United Nations as having the fastest shrinking economy in the world - with gross domestic product forecast to tumble 12 percent this year.

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USA and Zimbabwe

What, you may wonder, do the world's only super power and the imploding nation of Zimbabwe have in common?

The answer is that they were, on October 31st, the only two nations at the United Nations to vote against a motion to begin work towards an internationally binding Arms Trade Treaty.

147 nations voted in favour of beginning the process of framing such a legally binding treaty. and two voted against at the General Assembly in New York City.

The Control Arms Campaign, which supports such a treaty, contains more background to this issue and why it matters that international agreement is reached in trying to limit the flow of weapons around the world. Many such arms, as a result of legal loopholes, make their way into conflict zones around the world, extending their scope and deepening their impact, particularly in Africa and Latin America.

Let's hope that the incoming adminstration seeks more positive allies than the regime of Robert Mugabe when considering its foreign policy options in the coming years.

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