Zimbabwe Business Watch : Week 40

The political economic crisis deepens dramatically to the point now where business, in any normal sense, is becoming impractical.

Disparities and anomalies abound from pricing to charges and to the manner in which each business endeavours to account for itself in Zimbabwe Dollars. With inflation of over 30% per day and rising, it has become impossible to reliably conduct transactions. More and more, cheque payments are disappearing form the scene and buying and selling is being driven toward Zimbabwe Dollar cash and tradable Foreign Currencies.

Business is bracing itself for even more dramatic rise and the speed at which inflation is moving upwards.

The US Dollar traded at 150 000 to 1 late last week and has risen as high as 500 000 today. This equates to nearly 250% in the space of 3 trading days.

It was hoped that with the announcement of the increase in the daily withdrawal limit, pressure may ease slightly but there are doubts as to from where the increased cash might come.

Rumours abound that the RBZ Governor is to reach the end of this term at the end of the month and the new Governor put in place given the fact that economic management may well be the responsibility of the Opposition Prime Minister.

This entry was posted by Sokwanele2 on Wednesday, October 1st, 2008 at 11:43 am. You can follow any comments on this entry through the RSS 2.0 feed. Both comments and pings are currently closed.