Zimbabwe Business Watch : Week 5
Business began very quietly as most major manufacturers remain closed.
Workers throughout the private sector are adding their call for wages and salaries to be paid in forex as the Zim Dollar becomes worthless. However, unless the particular business is licensed to trade in foreign currency, it becomes impossible and a stand-off results.
Civil servants and security forces are also demanding the same and “government†is rushing to deal with the matter to avoid a major backlash, particularly from the military.
Public telephones and postal services will be now be charged in forex and the charges gazetted are widely viewed as excessive and above international levels. Until the whole country is permitted to trade in Rand or USD, then those without simply cannot pay for these services.
It is understood that over 90% of families are now supported by exiles which clearly sustains the economy and takes pressure off an unpopular authority.
Most employees are, effectively, not paid for the labour as cash withdrawals will take up to two months to buy a loaf of bread. Because of the parallel and forex driven economy, most street cash is being absorbed in business trading and therefore forex cash is almost unobtainable for the common man.
Manufacturing and mining production continues to plummet and most goods on the shelves are now imported, mainly from South Africa.
The OMIR stands at 14,7 qdln and the USD trades on the street at up to 20 tln and the Rand over 2 tln.
