What is the secret behind why countries are allowed to print their own money?

The question “Why don’t countries print their own money and instead borrow?” may seem simple, but in reality, it hides profound international economic laws. If printing money were the solution to all economic problems, then Mugabe—a famous figure once highly desired in many countries—would have long ago made Zimbabwe a global superpower. But the reality is completely different: when Mugabe recklessly printed money, initially 1 Zimbabwe dollar could buy a loaf of bread, but after ten years, people had to drag carts of cash just to buy a loaf. This story proves that a country’s “right to print money” is not an absolute freedom as many think.

Understanding the right to print money in the global economy

Every modern country has the right to print money. But this right is not unlimited. The entity with this authority is called the “central bank.” In most countries, the central bank is controlled by the government, but there are exceptions—such as the U.S. Federal Reserve, which operates independently of the government. This is not a trivial detail. Because of this power, Kennedy once tried to regain the right to print money for the U.S. government. Later, Trump also made similar efforts, even releasing documents related to Kennedy’s assassination involving this struggle.

However, owning the right to print money does not mean unlimited freedom to do so. Every country must follow a basic principle of monetary economics. When the money supply exceeds actual demand, inflation occurs. When the supply is too low, the economy struggles to circulate goods. Therefore, printing money is not a solution to economic problems but a sophisticated tool that must be used judiciously.

Historical evidence: When printing money becomes a self-destructive weapon

To understand why countries cannot freely print money, we need to look at one of the most painful economic lessons in modern history: Zimbabwe’s currency crisis. Mugabe, once admired and considered a close friend, is a prime example of the mistakes made when abusing the power to print money.

Mugabe was born into a family that valued knowledge. After earning degrees in South Africa, Tanzania, Zambia, and elsewhere, he returned to become a teacher. In 1963, he founded and joined the Zimbabwe African National Union (ZANU), which won and took power after Zimbabwe gained independence in 1980. During his 37-year rule from 1980 to 2017, Mugabe held absolute power.

In the early days, Zimbabwe was a wealthy country. Its economy was diverse, industrialized, and agriculture accounted for 12.2% of GDP. The skyscrapers in Harare were comparable to those in major Asian cities. People wanting to emigrate, if they couldn’t go to the U.S. or Europe, would consider Zimbabwe.

The turning point came in late 1997, when former soldiers protested demanding the post-war benefits Mugabe had promised. At that time, Zimbabwe’s central bank was heavily in debt. Mugabe, who held a master’s degree in law from the UK, decided to use the “weapon” of printing money to solve the problem. Each veteran was awarded 50,000 Zimbabwe dollars.

Immediately after the money was issued, prices began to rise. At first, Mugabe believed that printing more money would fix the issue. But the more money was printed, the less people could buy with their cash. A vicious inflation cycle started: print money → prices rise → insufficient cash → print more money → prices rise further. What happened? Zimbabwe plunged into chaos.

The numbers tell the story:

• 1980: 1 USD = 0.678 Zimbabwe dollars
• 1997: 1 USD = 10 Zimbabwe dollars
• June 2002: 1 USD = 1,000 Zimbabwe dollars
• 2006: 1 USD = 500,000 Zimbabwe dollars

Inflation rates skyrocketed: 55% (2000), 133% (2004), 586% (2005), and up to 220,000% in summer 2008. By 2009, inflation was so absurd it couldn’t be recorded—officially announced at 5 trillion percent.

To simplify: if you had 1 Zimbabwe dollar in 2009, you could exchange it for 1 quintillion Zimbabwe dollars in 2006. Zimbabweans couldn’t carry enough cash to buy a loaf of bread and had to use ox carts to transport their money.

Why countries must borrow dollars instead of printing their own

The answer lies in the nature of the modern international monetary system. Not all currencies are equal in value. After World War II, as the world reorganized, the need for an international medium of exchange became urgent. That’s when the U.S. dollar emerged as the “world’s currency.”

Imagine the world as a large village. The U.S. is the strongest, wealthiest family. One day, the head of the U.S. declares: “From now on, all transactions in the village will use my dollar. I will print images of my ancestors on it, and all this money will be backed by gold.” Everyone trusts and accepts it. From then on, all countries must use dollars to buy and sell goods with each other.

But this creates a fundamental inequality. Other countries cannot print U.S. dollars themselves. When they need to buy foreign goods but lack enough dollars, they must borrow. Germany is a good example: they only produce cars, not rice. Without importing food, Germany would starve. But to buy food, Germany needs dollars. If they don’t have dollar reserves, they must borrow or buy on credit in dollars.

The only way for countries to accumulate dollars is through exports. When a country sells goods abroad, it receives dollars. Foreign workers sending money home also generate dollar inflows. All these dollars are called “foreign exchange reserves in USD.”

Foreign exchange reserves — a measure of a country’s economic health

Foreign exchange reserves are a crucial indicator. They reflect a country’s ability to pay international debts, maintain stable exchange rates, and respond to financial crises. In 1997, during the Hong Kong financial crisis, China used its enormous reserves to stabilize the market. As a result, the international financial system did not collapse.

Today, the countries with the largest foreign reserves are:

• China: $3.5 trillion
• Japan: $1.4 trillion
• Switzerland: $1 trillion

These figures are not just statistics. They represent economic power and geopolitical influence. A country with large reserves can negotiate more confidently, handle instability better, and maintain economic independence.

Can the U.S. print unlimited money?

The U.S. is special. As the issuer of the dollar, the U.S. has the right to print money accepted worldwide. But can they print unlimited amounts?

The answer is no. The U.S. employs three steps to distribute money:

First, the Federal Reserve prints money.

Second, the U.S. government spends this money on defense and public expenditure. Export companies, multinational corporations, and large military contracts benefit.

Third, foreign entities receive these dollars and use them to buy global goods, creating a flow of dollars back to the U.S. This policy is called “quantitative easing.” It allows the U.S. to print more money than needed domestically, while the world agrees to bear the consequences, and wealth flows into Washington.

But there are limits. If the U.S. prints too much, the dollar will depreciate rapidly. Global inflation will occur. Then, even the U.S. itself will face problems. Therefore, the U.S. only prints within a range that global inflation can tolerate. That’s also why, despite having the right to print money for the world, the U.S. has the highest national debt. Their national debt is called the “debt of the century”—a burden that generations must carry.

Lessons for all countries

The truth is, any developing country needs to accumulate dollars. This is not just an economic issue—it’s a matter of national survival. Countries with strong export commodities will earn dollars. Those unable to produce enough goods must borrow.

And this is why countries cannot freely print money. Not because they lack legal rights, but because of economic realities—no one will accept your currency if the world doesn’t trust it. Only the U.S. dollar, euro, renminbi, and a few other currencies are widely accepted.

Other countries must work hard, export high-quality products, build foreign exchange reserves, and maintain stable exchange rates. It’s a difficult path, but it’s the only way.