Zimbabwe Business Watch : Week 49
There is more and more of the same as business edges its way towards Christmas shutdown with another week of confusion, threats and intimidation.
The currency market froze in anticipation of the Minister of Finance’s presentation of his 2008 budget proposals revealed on Thursday. Forex was withheld, this exacerbated the shortage and the rates rushed on as businesses tried to fund their imports.
The Minister of Finance continues to live in denial and blamed the 2007 budget deficit of 13.9 trillion dollars on drought and sanctions.
Zimbabwe’s domestic debt has increased from by 54% from September to October.
The highlight of the week has been the absence of cash as the Reserve Bank dries up the commodity deliberately in advance of the new currency which has still not appeared. This has exaggerated the hardship of the population resulting in long bank queues for non-existent cash.
Many businesses have been unable to pay their workers. In addition, workers have to be given time off to draw money; failure to receive any has meant households have been denied food and other basic commodities.
The Old Mutual Implied Rate has passed the 3.4 million barrier and scarce US$ are now trading at just under 4 million: 1
