Zimbabwe Business Watch : Week 27
The new week dawned with even more dramatic news. The USD, trading at over 30 billion to 1 on Friday opened the day at over 60 billion.
As the cash crisis grows, the disparity between the street and the business rates widened as the former relies on the availability of hard cash. When it is in short supply, desperate relatives of economic exiles compete for the ever diminishing ZWD by reducing the price.
As it stands now, no matter the size of the corporation or business, the limit on daily cash withdrawals still remains at ZW $25 Billion, enough to buy 6 fresh eggs!
Likewise, employees do not have enough days in the month to withdraw sufficient cash to pay for their groceries as the financial sector nears collapse.
The OMIR sits at 66 Billion to USD1 and the Hard Boiled Egg Index Fair Value Rate has risen to 28 Billion which is just above the street rate.
July 1st, 2008 19:13
The human and economic toll on the people of Zimbabwe cannot be overemphgasized. My heart goes out to everybody how must suffer at the hands of Mugabe and his supporters.
I am curious about something though. How does this government, which has virtually destroyed a once vibrant economy, earn revenues to keep itself in power? More importantly, who does businesses with the Mugabe government? I am truly curious …