Kuwa na akiba ya foreign currency

[Sky Eclat]

Uzuri wake ni kuwa nchi ikipitia depression pesa yako haitapoteza thamani. Unaweza kuhifadhi kwa Japanese Yen, British £ au USA $ au hata €.

Si lazima uwe na ma hela, hizi 40,000 au laki unaibadilisha foreign currency na ku deposit au kuweka kwenye kububu.

Kwa utaratibu wa bank zetu hii imekaaje?

 

[Mwanamayu]

Uzuri wake ni kuwa nchi ikipitia depression pesa yako haitapoteza thamani. Unaweza kuhifadhi kwa Japanese Yen, British £ au USA $ au hata €.

Si lazima uwe na ma hela, hizi 40,000 au laki unaibadilisha foreign currency na ku deposit au kuweka kwenye kububu.

Kwa utaratibu wa bank zetu hii imekaaje?

Hizo foreign currencies nazo hupungua thamani, ingawaje kwa kiwango kidogo sana. Hiyo akaunti itakuwa inachajiwa kwa kuhifadhi fedha.

Usijaribu kuweka kwenye 'kibubu' kwani hizo currencies ubadilishwa note zake. Mfano, note ya £5 imebadilika mwaka jana. Halafu ile ya £20 itabadilika hivi karibuni. Hivyo kama hauna taarifa na umeweka kwenye 'kibubu', lazima utageuka 'bubu'.

 

[Sky Eclat]

Hizo foreign currencies nazo upungua thamani, ingawaje kwa kiwango kidogo sana. Hiyo akaunti itakuwa inachajiwa kwa kuhifadhi fedha.

Usijaribu kuweka kwenye 'kibubu' kwani hizo currencies ubadilishwa note zake. Mfano, note ya £5 imebadilika mwaka jana. Halafu ile ya £20 itabadilika hivi karibuni. Hivyo kama hauna taarifa na umeweka kwenye 'kibubu', lazima utageuka 'bubu'.

Na ya £10 pia imebadilishwa mkuu Ninadhani ya $50 itakuwa ya mwisho

 

[TUJITEGEMEE]

Tunza fedha kwenye almas na dhahabu hata Tanzanite! Na kwa sasa unaweza kutunza kwenye Ruble ama Yuani ambazo ni fedha za Russia na China...nchi hizo muda si mrefu zitaimarika sana kiuchumi na ela yao haitayumba. Pia wekeza kwenye Nishati ama Afya. Those are safe haven from recession and depression!! Just thinking though!

 

[Mzuvendi]

Uzuri wake ni kuwa nchi ikipitia depression pesa yako haitapoteza thamani. Unaweza kuhifadhi kwa Japanese Yen, British £ au USA $ au hata €.

Si lazima uwe na ma hela, hizi 40,000 au laki unaibadilisha foreign currency na ku deposit au kuweka kwenye kububu.

Kwa utaratibu wa bank zetu hii imekaaje?

You assume that the value of the foreign currency does stay stable indefinitely. In reality it doesn't. What happens when the foreign currency devalues? The answer is you will be the loser.

Furthermore, which bank are you going to open your foreign account reserve? If it's a local bank, the depression could force the bank to close its operations. Remember that depression is a very severe case of bad economy and it take years to recover from it. It can take more than 10 years. Are you sure that the central bank will be able to repay the whole money in foreign currency?

Now if your account is in a foreign country, don't you think that you are one of the reasons why your country suffers depression? As I know foreign currency is a commodity and the law of supply and demand applies when it comes to selling and buying foreign currency. If many Tanzanians try to buy the US dollar in order to keep it as a reserve, they increase the demand of the US and in return devalue their own currency.

Having a reverse is a the best thing to do. But having it in foreign currency carries its own risks too. So before you decide to open a foreign currency account, you need to weigh in the pros and the cons.

 

[TUJITEGEMEE]

Fears of a US-China trade war in the making has driven the dollar down against a numbercurrencies and ramped up foreign demand for dollar-denominated gold.

Gold was trading higher on Monday following Beijing’s retaliation against the new US tariffs on steel and aluminum imports from China.

Spot gold added 0.8 percent on Tuesday reaching $1,332.20 per ounce. US gold futures for June delivery settled up $19.60, or 1.5 percent, to $1,346.90 per ounce, Reuters reported.
All That Glitters: Gold Strengthens Amid Renewed Tensions Between US and China
======
Nilichotahadharisha chaanza kudhihirika

 

[Mzuvendi]

Tunza fedha kwenye almas na dhahabu hata Tanzanite! Na kwa sasa unaweza kutunza kwenye Ruble ama Yuani...nchi hizo muda si mrefu zitaimarika sana kiuchumi na ela yao haitayumba. Pia wekeza kwenye Nishati ama Afya. Those are safe haven from recession and depression!! Just thinking though!

We don't trade with Russians that much. So what's the point of stocking the reserve in Ruble? Furthermore, why should Tanzanians use their gold and Tanzanite for reserve? It doesn't make any economic sense. Tanzania has economic advantage when she trades commodities that aren't produced anyway else such as Gold and Tanzanite. Now when you use these commodities as a reserve mechanism, you will automatically increase its price and eventually create back channels for black market.

 

[TUJITEGEMEE]

economic sense.

Definitely, I am very naive in narrating many theories and principles of economics (it is not my well established field). However, I believe in Demand and Supply rules.

Now, I am puzzled with your view of discouraging us amassing our golds and Tanzanites; while others, mainly the heavy weight economic countries, are striving with vigor to stockpile the same precious metals from any mining hole in the world (including in their home places) with aim of strengthening their country economy. For instance, recently, a good number of European countries were reported to be recalling all of their golds which were kept in US vaults. So, with your already put forward argument, do you want tell us that these heavy weight countries have run from mediocrity to highest order lunacy in economic terms or what !! In other words, I would like to learn more on what actually do you mean by writing that it does not make sense to stockpile the gold and tanzanite as a country or even individuals.

We don't trade with Russians that much

We are going to trade with her (Russia), heavily, in near future wether you(we) like it or not. This is due to her highly newly sophisticated technologies in the field of pharmacy, agriculture, even in the military spheres. I am sure, while we are very keen to develop our own innovative technologies in these fields, we ought have to consult the already established countries (Russia included) in technology. Russia is rapidly stabilizing economically. Therefore, we can not count ourselves as sane if we will naively neglect Russia partnership in any arena.

Tanzania has economic advantage when she trades commodities that aren't produced anyway else such as Gold and Tanzanite.

Yes. That is what I mean, these commodities (golds and tanzanites) should be readily available in our vaults (not in the mining holes). We put them in our vaults by collecting them from our mines or elsewhere. With our precious metals stock being full, we can say something in economic terms as a country or individuals especially these days when the well known leading world reserve currency is 'shaking' in the financial grounds.

Now when you use these commodities as a reserve mechanism, you will automatically increase its price

I agree with you on this, the price will increase and that where we will just pick our 'Bingo' at our doorstep. Yes, we can. For instance, China is the world number one buyer of oil. With that privilege, Chinese are starting to set the negotiation terms on the oil business (Petro-yuan). If we will be able to really amass a lot of these 'metals' then we can dictate the market terms.

and eventually create back channels for black market.

At/For the best of my knowledge, this point seems to be not holding much of useful drinking water; regarding our current government leadership. Black market, yes, may rise but won't affect our market as measures to handle that are difficult to twist at the moment.
-------
Karibu.

 

[Kibanga Ampiga Mkoloni]

Hizo foreign currencies nazo hupungua thamani, ingawaje kwa kiwango kidogo sana. Hiyo akaunti itakuwa inachajiwa kwa kuhifadhi fedha.

Usijaribu kuweka kwenye 'kibubu' kwani hizo currencies ubadilishwa note zake. Mfano, note ya £5 imebadilika mwaka jana. Halafu ile ya £20 itabadilika hivi karibuni. Hivyo kama hauna taarifa na umeweka kwenye 'kibubu', lazima utageuka 'bubu'.

Sio kwa Tsh.

 

[Mzuvendi]

Definitely, I am very naive in narrating many theories and principles of economics (it is not my well established field). However, I believe in Demand and Supply rules.

Now, I am puzzled with your view of discouraging us amassing our golds and Tanzanites; while others, mainly the heavy weight economic countries, are striving with vigor to stockpile the same precious metals from any mining hole in the world (including in their home places) with aim of strengthening their country economy. For instance, recently, a good number of European countries were reported to be recalling all of their golds which were kept in US vaults. So, with your already put forward argument, do you want tell us that these heavy weight countries have run from mediocrity to highest order lunacy in economic terms or what !! In other words, I would like to learn more on what actually do you mean by writing that it does not make sense to stockpile the gold and tanzanite as a country or even individuals.

Karibu.

Before, I respond to your comments, for a moment let’s go back to the original theme of this thread. The main theme is the benefits of having a safe net using foreign currencies. The creator of this thread tries to convince us that if we open reserve accounts in foreign currencies, we will be well off during difficult time, in particular during recession or depression. Now if you take deep dive into this theme, you will draw a conclusion this is kitchen economy or personal economy which is different from the economy of the country, in terms of scope and assumptions. My question now is can we try to stick to the constrains of personal economy?


Now let me take time to respond to some your comments above:


The heavy weight economies aren’t stoking piling gold for the sake of doing so. I believe they do so as part of their monetary policies, not at individual level, but at macro–economic level. For instance, in the example you have given above about European countries recalling the gold which were kept in the US vault, central banks are responsible for doing that. In other words, it was an execution of monetary policies at macro-economic level and not at personal economic level. Furthermore, it’s worth noting that the execution of monetary policies at macro-economy level can take place for reasons different from those experienced at personal level. For example, the central banks hoard gold to stabilize or strengthen the currency of the country. On the contrary, if you hoard gold, you won’t change anything.


Gold and Tanzanite are commodities which are finite in supply and can’t manufactured in laboratories. As such, when there’s a huge demand for these commodities, those who supply them should sell them. This is particularly true for countries which are poor and have small tax bases such as Tanzania. The Tanzanian tax base can’t pay for schools, roads, military, hospital and other services. Besides, the country need to nurture and increase the volume of people and entities that pay decent taxes. The question is how the country can meet these objectives if it can’t sell and invest?


With regard to Russia, what we can get from them, we can get from China. The entire Russian economy depends on the export of natural gas and petroleum to Europe. Therefore, you can remove Russia from our trade equation and we won’t feel the pain. So, in terms of hard currency reserve, we don’t need to stockpile Rubble. In the future, if the economy of Russia improves and becomes a thing, we can reverse our position.

 

[Kibanga Ampiga Mkoloni]

Uzuri wake ni kuwa nchi ikipitia depression pesa yako haitapoteza thamani. Unaweza kuhifadhi kwa Japanese Yen, British £ au USA $ au hata €.

Si lazima uwe na ma hela, hizi 40,000 au laki unaibadilisha foreign currency na ku deposit au kuweka kwenye kububu.

Kwa utaratibu wa bank zetu hii imekaaje?

Nijuavyo mkulu alikuwa ana mapango wa akurudi kwneye dhahabu, sasa sijajua kama ule mpango bado anao.

 

[TUJITEGEMEE]

Gold and Tanzanite are commodities which are finite in supply and can’t manufactured in laboratories. As such, when there’s a huge demand for these commodities, those who supply them should sell them. This is particularly true for countries which are poor and have small tax bases such as Tanzania. The Tanzanian tax base can’t pay for schools, roads, military, hospital and other services. Besides, the country need to nurture and increase the volume of people and entities that pay decent taxes. The question is how the country can meet these objectives if it can’t sell and invest?

With this surging price of Tanzanite (thanks to the Government of Tanzania initiative to bolster the protection of our natural resources), I guess we can pay at least 60% of what you have listed with our own money. What do you think?

Source: Dailynews via the here below thread

 

[TUJITEGEMEE]

Kuweni makini mnapochagua aina ya fedha ama mbinu ya kutunza akiba yako. Ni muhimu kusoma taarifa zinazohusu fedha mara kwa mara tena kutoka kwenye vyanzo mbalimbali.
China’s actual gold reserves mighty enough to kill the US dollar – RT’s Keiser Report

 

[TUJITEGEMEE]

25/10/2018
===
The selloff on Wall Street dragged down some global markets as well. The standout loser, Thursday, was Japan’s Nikkei index, which lost 3.72 percent. In China, Shanghai composite traded slightly higher at 0.5 percent, while stock indices in Europe were either trading flat or showing modest gains.
US market meltdown wipes out 2018 gains as Trump trade wars take toll on stocks
------
04/09/2018
===
The Chinese yuan has strengthened its position among global reserve currencies, rising to 1.84 percent in the second quarter of the year, according to the International Monetary Fund.

 

[Mzuvendi]

With this surging price of Tanzanite (thanks to the Government of Tanzania initiative to bolster the protection of our natural resources), I guess we can pay at least 60% of what you have listed with our own money. What do you think?

Source: Dailynews via the here below thread
Tanzanite price skyrockets

Sorry, I missed this one. Tanzanite is a rare stone. But, I think Tanzanians should start thinking that the best natural resources are Tanzanians themselves. If Tanzanians can't equip themselves with better education and ingenuity, Tanzanite, Gold, diamonds and other stones won't help them

 

[Mzuvendi]

Kuweni makini mnapochagua aina ya fedha ama mbinu ya kutunza akiba yako. Ni muhimu kusoma taarifa zinazohusu fedha mara kwa mara tena kutoka kwenye vyanzo mbalimbali.
China’s actual gold reserves mighty enough to kill the US dollar – RT’s Keiser Report

Chinese have bought a lot of US bonds. So if they continue to kill the US dollar, they will got nothing in return.

 

[Sky Eclat]

I always keep some US$ in my house, it’s not easy to spend it unless you real have to.

 

[Mzuvendi]

I am presuming that you have missed this important info as per our discussion.
===
China cut its holdings of US Treasuries in September, according to the latest data, but experts said on Sunday that the move is aimed at supporting the yuan rather than getting back at the US amid the ongoing trade war.
According to data released by the US Treasury on Friday, China held $1.15 trillion of US Treasuries by the end of September, down by about $13.7 billion from the previous month.

China sells US Treasury bonds to support yuan, not to hit back over trade war: experts - Global Times
---
For many years Russia has been one of the largest holders of U.S. Treasury bonds, but that seems to be no longer the case. Since March, Russia has significantly cut its holdings from $96.1 billion to $14.9 billion in May, which means it's no longer a leading investor in the U.S. government bonds, and it’s now well behind China, Chile and Kazakhstan.

Why is Russia selling off its U.S. bonds?
---
The Reserve Bank of India (RBI) has sold US treasury (USTs) bonds worth $16.3 billion since April, with the country's stock plummeting to $140 billion in late August, according to The Economic Times.

India Sells Off Over 15 Bln in US Dollar Bonds, Following in China's Footsteps

I saw that before. But the downsizing of the the US debts by Chinese isn't that big. China still holds above 1 trillion of the US bonds. That's a big chuck of money. Besides, the bond arrangement benefits both China and the US. The US gets the loans with lower interest rates; whereas, China has a stead stream of revenue from a very low risk borrower. You can't beat that.

With regard to Russia, Russia sold its US bonds for different reasons. First, Russia depends on the export of oil and gas. As of lately, the price oil has been so poor. So I think one of the best options is to bring back foreign reserve to cover domestic spending. On political front, Russia and the US aren't in good terms. So there's no point for Russians to keep their money in the US..

 

[Mzuvendi]

I always keep some US$ in my house, it’s not easy to spend it unless you real have to.

For emergency purposes, yes you should keep some money in reserve. But, I am not sure if keeping it in US dollars makes a difference. It gives you a sense of security, but in reality you aren't better than the other guy who keeps his money in the bank.

 

[TUJITEGEMEE]

China has a stead stream of revenue from a very low risk borrower. You can't beat that.

Thank you for your response. However, I may be highly likely guessing right that you missed the info of US becoming a high risk borrower! US dept is irreparable!!! Read this below while regarading the unpredictability of the US future economic trends. The unpredictability of US economic trend is due to the US government being obssessed to the so called “off-balance-sheet” liabilities.
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An Overlooked Way to Reduce the U.S. Debt While Boosting Growth