What is Currency?

Currency is defined as a monetary system that is widely used in a specific country, region, or state. Various countries have distinct currencies. The value of a country’s currency directly influences the state of the economy. Due to the existence of interdependence and trade, it is also permissible for one country to use another’s currency, as demonstrated in Zimbabwe, where the US dollar has managed to sustain the economy ever since it has been introduced in Zimbabwe. The article will examine the value of the old conventional currency, which is a barter trade system as another alternative to solve economic stability if embraced and positioned well in the market sector.

What is Barter Trade? 

Wide research has shown that when the barter trade was still in existence, African markets were well established and tightly controlled. It is therefore crucial to go back to the old narrative ways because an implementation works better in an area where it originates from. In other words, USD dollars works better for European countries, and consequently, barter trade works even better in African countries. So, in this situation, African countries are the sole creators of the barter trade; they created it, adopted it, and worked with it quite successfully. Barter trade was the first form of transaction to be formed, a method of exchanging products or services without the use of a medium of exchange, such as money. In simpler terms, money is not involved in barter trading. For instance, one could get hair products in exchange for food commodities. The method was fair since both parties had to agree before exchanging. The African nations had well-established traditional government structures in which chiefs and middlemen might intervene in the event of unjust commerce. 

Advantages of the Barter Trade

Decrease in Inflation Growth. 

Current research has shown that hoarding of goods is the main contributing factor in the rising of inflation. Quite a few producers are hoarding goods in an attempt to sell them at a higher rate. The existence of different rates in the financial system causes people to inflate prices by hoarding even when production is more than sufficient. In this case, implementing the barter trade will decrease inflation as producers would have no option than to distribute products and services. Salaries could be divided and presented in packages. The barter trade can also work in complementing currencies that are being introduced to put a halt to economic instability. 

Minimal Chance of Exploitation

Another benefit of the barter system is that problems of foreign exchange and international trade do not arise, and there is also less possibility of concentration of wealth in the hands of a few people as different people specialize in different work and nobody can control everybody’s fortune, which is the case with money, where if one acquires money in abundance, he or she tends to control others and exploit them, which is not possible in the barter system.

Can the Country Embrace the Barter Trade? 

In the case of Zimbabwe, can the barter trade be put back into practice on some of the common transactions? Since the population is at the point of acquiring new currencies, barter trade can also be made available on certain commodities.

Conclusion

To sum up the article, due to the economic upheavals in the country, the new currency could also be backed up by a traditional practice that was once there in the beginning. We can start with the basics after all measures are subjected to trial and error; we can also form better practices that could help us in placing economic instability at a halt. The barter trade proved to have worked back then and it can work better as new ideas can be implemented on how best the country can run this initiative.