Zimbabwe in fresh cash crisis

via Zimbabwe in fresh cash crisis | SW Radio Africa by Tichaona Sibanda  November 27, 2013

Just a month before Christmas Zimbabweans are standing in long winding queues to withdraw cash from banks, amid reports of a fresh liquidity crunch.

Simon Muchemwa, our correspondent in Harare, told us that cash shortages and long bank queues, last seen during the 2008 meltdown when the Zim dollar was still in use, are now commonplace.

After the July elections were controversially ‘won’ by ZANU PF, the country’s banking sector lost nearly a $1 billion to offshore accounts due to political uncertainty amid concerns about the new government’s economic policies.

Muchemwa said depositors are no longer making regular deposits and this has resulted in most banks imposing withdrawal limits of $200, in an attempt to make the little cash available go around.

Civil servants were last week paid their annual November bonuses and have been rushing to banks to access their salaries, a situation that has increased the demand for cash ahead of the festive season.

Munjonzi Mutandiri, the regional coordinator of the newly formed political party the NCA, told SW Radio Africa that there is no debate the economy’s performance is linked to the politics of the country.

‘In Zimbabwe it is clear that the government is arrogant and to a certain extent irresponsible for bringing economic ideas that are not in the best interests of the country.

‘Their economic policies are not good for the country and that brings lack of confidence in the economy. The only way to remedy this is to go back to the drawing board and come up with a blue print that helps the nation and not individuals,’ Mutandiri said.

Economist Luke Zunga agreed that the flight of money from Zimbabwe was because of the economic policies generated by the political system.

‘One of such policies is indigenization, so anybody who is sitting in Zimbabwe with a business there would think twice whether to keep their money or not. The political system doesn’t encourage growth in the economy itself and it is a derivative of the economic policies of the government,’ Zunga said.

 

COMMENTS

WORDPRESS: 11
  • comment-avatar

    This isjust only the tip of an exploding iceberg. I bank under my mattress. I am intelligent. Yes. Very clever. Yes. I know all that’s going on

  • comment-avatar

    No reasonable person can put his wealth where he cannot take it whenever he wants to use it. It is very foolish to bank U S dollars in any bank in Zimbabwe.

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    OSCAR 8 years ago

    I have said it before, GET YOUR MONEY OUT WHILST THERE IS STILL TIME. I am sure some banks will close their doors as they go broke.

  • comment-avatar
    William Doctor 8 years ago

    Zanu morons. One day they should be held responsible for this.

  • comment-avatar

    Please not another “blueprint”!!!!

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    bhora musango 8 years ago

    thanx for highlighting that their economic policies are not good and i shud also add on saying zanu is not good for the country.

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    Tsuro Magen'a 8 years ago

    I have said it before no one in his right mind can trust Mkoma Chunky with his money. The 31st July 2013 election theft told everyone that we have a Mafia gang running our country,lets get ready for the second Zanu Armageddon.

    Even the Chinese are making their money and quickly take it in suitcases to where its safe.

    Most Politburo members are keeping their US Dollars hidden in their houses just like the Gadhafi’s ,Saddams, Macos, Gbogo, Mtharikiti etc. while they were busy telling their people everything America is bad.

    The good news is one day we shall see these millions of dollars, because they will not be able to hide them anymore.

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    Nothing is good about Zimbabwe everything is bad totally bad their country,their policeis as well as their Elections its even useless to vote in Zimbabwe because even if u don’t vote your vote will be counted so why must I waste my time supporting fools .People must stop being used by Zanu people because their only protecting themselves so that they won’t go to jail anything that has ZANU PF inside just know that its trouble and poverty for 33years people of Zimbabwe still believe in Zanu ohhhhhhoooo useless Zimbabweans

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    Parangeta 8 years ago

    Merry Christmas, let it snow, let it snow! It’s a ‘snow-job’!

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    chamjsa brighton 7 years ago

    gentlemen dont relax bcz we are approaching 2008 situation.chinamasa is a failer tode basa isu marovha.they are sppending state funds paying cios rather than economic development.we need a national strike against these stupid mugabe guys kuti vabve.mitero yodikwa kumarovha means a failer.lets do action for them bcz its time up.lets form an underground wing for mdc to fight against zanu&i will be a leader fund me may be ndingawana zvokuita.

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    chamjsa brighton 7 years ago

    toda national strike pliz against zanu kuti vabve baba jukwa todawo basa toita sei?beware mugabe oda kutosiya gero rake pachigaro for the next 20years bcz muzanu hapana anoti pwee then robert[ jnr]nachatunga votevera lets do national strike vanobva fund us baba jukwa