While BRICS is explaining the merits of de-dollarization to other countries, Zimbabwe is in dire need of the US dollars to survive in a dysfunctional economy. Citizens of Zimbabwe are avoiding their local currency due to hyperinflation that’s engulfed the country for a decade. Zimbabweans have taken refuge by hoarding US dollars to beat inflation which helps them survive financially.
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Fintech companies in the US are providing them the service by flying planeloads of hard cash in the US dollars to Zimbabwe. At least thrice a week, a private jet lands in the guarded part of Robert Gabriel Mugabe International Airport in Harare. The private jet carries millions worth of hard cash in US dollars packed in various bundles. This comes at a time when BRICS is trying to make other countries distance themselves from the US dollar.
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BRICS: US Fintech’s Providing Zimbabwe With Dollars in Hard Cash Worth Millions
The boxes of hard cash in US dollars are unloaded from the private jet and broken down into different packages. The packages are then distributed to the transfer points across Zimbabwe to meet the growing demand for US dollars. The unusual but legal operation is organized by the country’s top mobile money app Mukuru. This shows how far fintechs operate to meet the demand for the US dollar when BRICS is calling for de-dollarization.
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The world needs US dollars to survive or will face hyperinflation if local currencies are used by BRICS. “The demand for US dollars is massive in Zimbabwe,” said Ross Martin, a commercial manager at Travelex to Bloomberg. “During hyperinflation, people get rid of their local currencies like hot potatoes,” said Steve Hanke, an economist at Johns Hopkins University. The mindset in Zimbabwe is that “Since I have foreign currency, I don’t have to worry about currency depreciation,” said Maureen Nyoni, an agent in Harare.