Zimbabwe Business Watch : Week 20
Business is in total survival mode as it attempts to ride the storm of the post-election debacle. The RBZ governer is becoming more and more threatening and authoritarian whilst the country does not hear a squeak from the Minister of Finance.
The daily limit of cash withdrawals remains at $5 billion despite the size of the company and the fact that that equates to precisely USD15.
The new forex system whereby currency is legitimately traded in commercial banks has seen the government get their hands on more of this vital commodity. This was no doubt the objective of this liberalization and the net result is that businesses are being starved of currency which in turn has pushed the price up dramatically with the USD trading as high as 315 million (billion) to 1.
Foreign Currency Accounts (FCAs) remain blocked and are now widely believed to have been poached. Many businesses are indexing prices against parallel market exchange rates and this is resulting in all prices now being driven directly by changes in the rate of exchange. The USD on April 17 traded at 80 million to 1 which therefore translates into potential inflation of 293% since that date.
On the ground, businesses are desperately trying to pay their staff and workers who are all now placed in the executive tax bracket. The administration of employee remuneration is becoming extremely difficult as it is not permitted to dollarise such costs.
May 15th, 2008 12:37
Clearly, the funds are being used by the illegitimate, purported government of Zimbabwe to line their own pockets before the inevitable end. Some time ago there was a move on this site to protest against the German company which is printing banknotes for the illegitimate regime. I know that I certainly addressed some e-mails in German (provided by other users of the site) to the German Chancellor, Angela Merkel and others.
I know that a number of suggestions were made and am sure that other readers of this site also took steps in this regard. I see that a new 500 million dollar note was launched today. Does anybody have any feedback on the “stop the German printing campaign”, did anyone receive any responses to their e-mails? Should this issue not be taken up again as the notes are in fact being used to pay the footsoldiers of the regime to continue brutalising the population for having turned against ZANU-PF.
May 15th, 2008 17:10
A 10m Zimbabwe dollar note was issued earlier this year
The central bank has issued a 500m Zimbabwe dollar banknote, worth US$2, to try to ease cash shortages amid the world’s highest rate of inflation.
The previous highest denomination note was for Z$250m, issued 10 days ago.
May 15th, 2008 17:20
Hi Steve,
I sent numerous emails to the German company, German bank-workers’ union, German government re their providing Gono with note-paper to print his gazillions but not a single reply and no public response I’ve seen. Any ideas for further action?
May 15th, 2008 22:35
I’m commenting right from where the action is taking place (Zimbabwe,Harare).
I’m very angry with UN;AU and SADC. Why I say so, first of all they systematically wait for people to die before they take action.
As a result leaders who are “Thick Headed” start to murder and exploit the same people who voted them into power.
In most cases that I have seen in Africa where I belong,Poor people makes the majority of the voters. But they become helpless when it comes to oppression by the Governments that they elected.
Thats where i think organs like UN;SADC and AU are supposed to act accordingly i.e before such governments start killing those with different views on how they are running countries.
None needs to die because of politics even to sleep in bushes to avoid state thugs.
If anyone needs to prove me wrong,right now they can visit Mashonaland Central in Guruve at villages like Nyamhondoro School, they will see for themselves.
At this School a bogus warveteran called Mr Machumi who comes from Chipinge district is the leader of ZANU-PF youth who are beating suspected MDC people everyday at night.
People there are NOT allowed to mention anything to do with opposition or they will be in trouble.
Last Sunday all village heads were instructed to write names for all their people and their ID numbers,so that they can be sent to a collection centre in the district for ZANU-PF to use in the run-off for rigging and I don’t know how.
People were told Not to argue on the polling date if they are told that they have voted already, they should just turn their back and go home otherwise they will be beaten after the run-off.
All people who are allians who were not allowed
to vote before are being registered as Zimbabweans at this School, so that they will vote for ZANU-PF
Rural areas are now a No go areas for MDC because people are now very afraid.
So,MY QUESTION IS WHERE IS UN;AU AND SADC already over 35 MDC supporters have died.
It looks like they are waiting to charge someone with genocide, when genocide is being committed in their eyes. They must be charged too.
They must come on the ground to see for themselves,why are they just talking in their offices having tea, when we are being beaten and killed.
Wake up UN;SADC and AU please!
Mr Kufandatya