Since the announcement of Statutory Instrument 142 in Zimbabwe, Piggy has been in the hiding, attempting to figure out the implications of the measures. In fact, he is bewildered by the drastic policy shifts which have brought about new risks in terms of value-preservation strategies for households and individuals. The new measures imply that local transactions in foreign currencies such as the USD, GBP and ZAR will no longer be permissible. The Zimbabwe economy is reverting back to the Zim-dollar that failed in 2009. Bond Notes, Coins and RTGS balances will now be referred to ZWL. The Central Bank has also moved to slow down the “Old Trick that has been kept a secret on the Zimbabwe Stock Exchange”. That said, two individuals have crossed Piggy’s minds over the past 48 hours; George Soros and Gideon Gono.
George Soros is known for his investment and trading prowess in the Global Foreign Exchange Market. He is famously known as “the man who broke the Bank of England” after making a profit in excess of USD1.0bn by taking positions against the Bank of England. On the other hand, Gideon Gono is a former Reserve Bank of Zimbabwe Governor (2003-2013) who during his term, notoriously “printed money” to the extent that every person in Zimbabwe became a billionaire. In fact, there were 10 Trillion Zim-dollar denominated bills in circulation whilst electronic balances ran into Quadrillions. Piggy would like to refer to Gideon as “The man who broke the Reserve Bank of Zimbabwe’s money printing machines”.
While juxta positioning these two individuals is interesting, it raises deep fears for Piggy. Statutory Instrument 142 means that the money printing machines at the Central Bank are up and running again. Excessive money supply growth has an effect of pushing the inflation rate up and the net effect is value-destruction and that is Piggy’s worst nightmare. Piggy has consistently been recommending individuals and households to preserve value by parking RTGS or Bonds in shares. The C-Trade platform provides the opportunity to buy into listed companies on the ZSE and FINSEC. In addition, individuals that are motivated by the George Soros story should get started in Global Foreign Exchange Markets Trading by going through the School of Pipsology (babypips) course. The instructions are outlined here; https://piggybankadvisor.com/2019/05/30/an-fx-trading-course-for-beginners/ .Once completed, register an IronFX Demo Account and start working on a trading strategy. These two approaches will not only enable individuals to preserve value but will offer an avenue to diversify personal investment portfolios.
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