Amid the surge of the US dollar, financial literacy guru, Kalu Aja has argued that the US dollar should technically have the same value as the Zimbabwe dollar because they are both overprinted.
This was disclosed via his Twitter post amid the surge in the dollar seen yesterday as the US dollar index (DXY) hit a fresh 19-year high at 106.50. At the time of writing this article, the DXY had faced some pull-back to trade at 106.28. The current price is indicative of a 1.30% increase within the past 5 days, and 10.69% YTD.
Printed money can refer to physical cash, but it is also used to refer to money created by the Federal Reserve via a computer that adds to the overall money supply.
US Dollar Should “Technically” Have The Same Value As Zimbabwe Dollar – Expert Explains Why
Based on data Nairametrics obtained, at the start of 2020, there was $4.155 trillion in circulation. However, the current balance sheet trend shows $8.928 trillion, a whopping 114% increase.
Kalu Aja said, “The US Dollar technically should have the same value as the Zimbabwe Dollar because both have been overprinted.”
“Yet the US index (DXY) is up, why? Investors are seeking the safety of the US Dollar.” He said. “Yes, that same inflated dollar.”
Kalu attributed the surge in the dollar to the confidence that investors and governments have placed on the greenback as a major component of their reserves.
He said, “Being a reserve currency is King”