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Arguably not enough. You needed Zimbabwean dollars to pay for taxes in Zimbabwe, yet the currency collapsed.
by gasull 4y ago
Arguably not enough. You needed Zimbabwean dollars to pay for taxes in Zimbabwe, yet the currency collapsed.
- narrator 4y agoThe hyperinflation situation, like in Argentina or Zimbabwe occurs because the money floods into foreign exchange to buy imports from people who demand dollars. The exporting countries demand dollars because the dollar can be used to buy oil. Oil being priced in dollar, or the petrodollar standard is due to America providing protection to various OPEC countries who in exchange keep all their reserves in dollars. This is somewhat of a more informal arrangement, but is the reason that countries that stop selling oil in dollars usually get in wars with the U.S (e.g Iraq, Libya, Russia). Also. capital gains in foreign currency are not normally taxed. That and Argentina and Zimbabwe are horrible at collecting taxes.