Zimbabwe Adopts the Yuan

We could be seeing the beginning of the end, which has been years in the making. At first glance, the uninformed reader would say “Zimbabwe? Big deal.” However, avalanches don’t start off big, America’s enemy list is exponentially growing world-wide and is far from being untouchable, but most people who invest their time following the Kardashians couldn’t tell you that. As long as the malls are still open, everything is fine.

When the Zimbabwe currency collapsed, they began using U.S. dollars. It was a pretty smooth transition because at the time (2009), the dollar was really very stable. As the global reserve currency, the dollar attracted a great deal of support during the financial crisis. Of course, there were a few problems. One was that while there were plenty of dollar bills to use, there was very little change (meaning coins). The New York Times wrote a story about this reality in 2012: Continue reading