How do you save in a hyperinflation enviroment of one thousand %?

Question

please assist me provide resourceful info for my friend living in Zimbabwe which now has a 1000% inflation rate .

Answer 1

Move to the UK.

Answer 2

Zimbabwean Infltion is currently 1200% which is the official rate so you can guarantee it is actually higher. The IMF are predicting it will rise to 4000-6000% in the next year.

It is a complete waste of time holding Z$ (though I do note that some of the recently defunct notes are getting more on ebay than their face value).

Your friend must instantly convert his currency into Goods or Forex. Now it depends which border he/she is closest to. If SA then rands if in BYO then maybe puna. Botwana has a relatively stable currency and you can cross with a Zim passport without a visa within an hour or so.

I would convert all my currency into fuel, either buying it locally or crossing the border to buy it The Zim Gov allows a relatively large amount to come throgh privately, it will allways be worth what was paid for it in forex.

Then there is property, I feel that though it obviously a 5-10 year investment (coz you got to wait for these clowns to leave office) it is fundamentally undervalued - though don't buy a farm!!

It is an incredibly difficult time to do business in Zimbabwe and if you dont have an export market for your product you are just running to standstill - infact if your business doesnt go backwards its a miracle. I had to mothball a clothing factory there because the government kept changing the goal posts every week it seemed.

It is such a beautiful country, with such rich resources, mineral, agriclutural and human... it breaks my heart to think about how it could have been so badly managed.. its like someone been givin The Coca Cola Corperation and in 20years it having to file for bankruptcy!!

if I can be of any other help email me [e-mail]

Answer 3

Don't save Zimbabwein currency!
Usually in such an economy people start saving and even carrying out transactions in other mediums of exchange which retain better value. For Zimbabwe I would have thought the South African Rand would be the most appropriate, or else the ubiquitous US dollar.

It doesn't have to be currencys either. you could 'save' with property, though in zimbabwe I'd have thought that's also a bit risky.

Answer 4

Save in a foreign currency, like the Swiss franc or the Euro.
Or buy gold. But He should get his resources out of the Zimbabwe currency immediately & if he can emmigrate to the country of his choice. Once hyperinflation sets in, it's very difficult to fix & takes many years to get hold of.

(examples : post WW I Germany, modern day Argentina)

Answer 5

You put it in another asset - Zimbabwe's economy is wrecked - like in Weimar Germany. You need assets you can barter for other goods with. Perhaps foodstuffs at one end or if you have other assets you are talking about precious stones or anything useful and portable you can hoard.

Mugabe has totally wrecked that country.

Answer 6

You can purchase United States I series savings bonds.

They are inflation protected.

Answer 7

You need to be debt free in this type of environment so that no one can take your house, other wise a outstanding loan will cost you a lot of inflated dollars for what was a small loan.Get out of debt now.

Answer 8

That is easy.

Just open a brokerage account at TD Ameritrade (In the United States of America) over the Internet and wire transfer them your money every week.

Your money will be in USD and you won't have to worry about hyperinflation anymore.

Check if you can open bank accounts in USD, Euros or GBP in your country.

Answer 9

Buy GOLD, SILVER, PLATINUM, or Hard asset because Zimbabwe currency is worthless

Answer 10

He'll have to buy gold on the black market.....This may be difficult however. Perhaps he'll have to sneak across the border to buy it and bring it back with him.

Answer 11

buy any thing it really doesn't matter,so your stock would go up 1000%also u definitely make profit also.