While the banks are busy “processing”, the value of our money rapidly erodes
Earlier this week I instructed my bank to transfer funds to the value of $45 trillion into my current account. They made an error and transferred $45 billion. Ooops! They left off three zeros.
Interest on an overdraft is in the region of 6000% and now my account is overdrawn. It took me hours yesterday morning to get this sorted out. I am angry, but I also understand how easily an error like this can occur; nobody can keep up with the zeros and for anyone working with figures or cash, its just one big headache!
Last week the value of cheques payable was still restricted to $900 billion dollars. If you need to make a payment for a higher amount, you have to process a telegraphic transfer (RTGS). These are then forwarded to the Reserve Bank for approval (so gono can see who is spending what). This system takes anything between two days, and as we recently found out, two weeks!
Last week chaos reigned again as the banks were choc-a-block with transfers. Delays became longer and longer. Salaries and wages were not honored. And while the banks were busy “processing”, the value of the money was eroding rapidly.
Some bright spark finally managed to get gono to see the light. As a result, we are now legally able to write cheques to any value we require. How nice it is to be able to spend your own money without having to pass it by the headmaster first!
But, as usual, life in Zim cannot possibly be that simple; many companies now will not accept cheques as payment because they too take days to clear through the banking system.
What this does, is puts further strain on the little cash that’s floating about which is already in short supply as the black market trade in foreign currency also demands cash.
So, again, as usual, the little people continue to suffer.
The daily allowance for cash withdrawal at the banks (still restricted of course, by gono) still remains at $100 million per day. With a loaf of bread now costing $50 million this restriction can only be described as evil & shameful. If you are one of the fortunate few who are employed, you may earn the money but gono will not allow you to have it. Result: you starve!
July 19th, 2008 14:56
More new bank notes for Monday.
http://www.guardian.co.uk/business/feedarticle/7663377
I wonder they are printing them on. Maybe some Chinese paper. I actually printed some bills on normal paper and they don’t look too bad at all. Heck, why dont everybody start printing the stuff to help out Mr Gono.
I wish there was something that we in other parts of the world could do to speed up this deadlock, and make the regime just ‘go away’. How can the MDC except to ‘talk’ when their supporters are still getting murdered left right and centre.
AU, SADC, UN, Mbeki. I far as I can see, these people are still ditherers. They dither, they stall, nothing seems particularly urgent. Kofi Annan would be better to handle the whole thing.
In the meantime, Mugabe & Grace are playing in their kindergarten, handing out hampers provided by the Ukraines to needy ZanuPF families. It is just laughable and extremely sad.
Which makes me wonder - what if this breaking news item was released to make the West and Africa sit up and react with utmost speed.
“Black Gold discovery in Zimbabwe. Huge oil reserves have been discovered by a US petroleum comapany via satelite in the Matabeleland region of Zimbabwe, in close proximity to Botswana and Zambia.”
July 19th, 2008 18:31
In the absence of outside military force to topple the illegitimate and criminal regime of
Mugabe, they will have to be brought to the table by economic force. A solution to Zimbabwe’s economic collapse, which has the support of the MDC, the SADC, Civil Society, regional leadership and South Africa could result in enough arm-twisting of Zanu-PF for them to concede.
For example, a new Zim currency could be temporarily pegged to a basket of African currencies, including the Rand, and the condition would be that the MDC would have a majority voice in clearing up the mess. They would have to have control of the central bank, all physical output and all new investments. Morgan would have to be appointed Prime Minister and the security forces would have to be kept out of internal politics. If all this could be achieved there might be some hope of recovery, but even then it would be a slow process.
July 19th, 2008 21:08
Exile, arrest and try the whole lot. They are the vilest lying and manipulative creatures to have led the nation.
From the Toyota cressida debacles which claimed Nyagumbo in the eighties, to the war veterans disability claims. zanu has lied so transparently it’s amazing they are still in power. And why because they have been led to do so by the dirty constitution which even pardoned the biggest theif Kangai who embezled money meant to feed the nation in order to enrich himself.
The result has been that they have disregarded their roles responsibilties and valued the scandalous practices of their leader. This has become the culture of leadership in the country. Elevating nonentities like the late Peter Pamire, Kasukuwere, Chiyangwa, Leo Mugabe and several politicians who have looted the nation with impunity.
With this background scavenging countries like China, Russia and recently some balkan ones only bring gifts for the leader and VOILA!! the magic happens they can also loot in the name of being economic allies.
With bloody consequences if someone speaks out.