Plastic and fistfuls of dollars are survival kits for expats in Zimbabwe

The best way for expats to make sure they can access funds in unsafe destinations is to keep a fistful of their home country’s currency plus several widely-accepted cards.

Recently, a good number of expats, especially in the oil and gas industry, have found themselves in problem economies highlighted as financial risks. Zimbabwe is an example, with a recent report suggesting the country’s economy is fast becoming cashless, due literally to a shortage of banknotes and coinage supplies. Shopkeepers are now offering up to 50 per cent discount on cash payments, with even higher discounts for US dollars.

The report plus the experiences of the researcher suggest cash machines across the country are universally empty, and the replacement ‘bond notes’, supposedly on a par with US dollars, are worth less than half but still get massive discounts when used to pay for goods. For expat staff, it’s crucial to have a selection of widely accepted credit and debit cards, as payment by plastic is normally the default in food stores and restaurants popular with the expat community.

Venezuela is a popular haunt for expat oil and gas workers, but the value of its official currency has hit rock bottom and caused a seemingly unending economic crisis during which it’s not been uncommon to see shoppers wheeling barrows stocked with cash. The bolivar is now worthless for all practical purposes and inflation is at 500 per cent. International companies are now pulling out due to the impossibility of running a business under these circumstances but, while expat workers are still there, paying by card in the home currency is the only way to keep going. At present, the comparative strength of the US$ is also affecting currency rates in Brazil, Argentina and Turkey as it’s stifling emerging market investment.