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ZIMBABWE:
No money to print currency
IRIN News
May 29, 2006
http://www.irinnews.org/report.asp?ReportID=53593
HARARE - Cash
shortages have returned to haunt Zimbabweans. Banks started rationing
money on Friday, allowing clients to withdraw only Zim$5 million
(about US$49) to avert crowd trouble, but most ran out of mint-print,
prompting desperate clients to form overnight queues outside.
Last month the government awarded civil servants hefty salary increases
after the opposition Movement for Democratic Change urged them to
join planned future demonstrations. Official sources said the recent
150 percent pay rise for soldiers, teachers, policemen and nurses
had put a strain on money supply.
Reserve Bank officials told IRIN that plans to print about Zim$60
trillion (about US$592.9 million) were briefly delayed after the
government failed to secure foreign currency to buy ink and special
paper for printing money.
Inflation has shot to 1,042 percent and is still climbing as the
economic meltdown continues, putting Zimbabwe's rapidly dwindling
working class in an ever more precarious position. Cash shortages
were last experienced in 2003 and only ended after the introduction
of high- denomination bearer cheques.
One bank manager told IRIN: "We don't have enough money. The best
we can do is to share the little money that is there among our clients,"
but added quietly, "As the manager I can use my discretion and assist
genuinely desperate cases."
However, his voice was not low enough and he was immediately surrounded
by more than 20 people. "I need to pay $40 million [US$395] at the
hospital, $5 million [US$49] is of no use to me," pleaded one man.
Another in his late 20s was equally desperate. "I need to withdraw
$200 million [about US$1,976] by Saturday to pay the bridal price
for my girlfriend, but at $5 million [US$49] a day I will not have
enough money on the day," he lamented.
The manager, sweating profusely, escaped to the safety of another
office.
Margaret Phiri, 36, who teaches at a school 70km east of the capital,
was equally devastated.
"I had borrowed a total of $6 million [US$59] from friends and I
was supposed to pay them back this week after getting my salary
from the bank, but as things stand now I am in trouble because those
people expect me to bring them their money, while I also need to
get money to sustain myself," she said.
A soldier who refused to identify himself could not hide his frustration.
"What do you think I will do with this $5 million[US$49]? It cannot
buy much. I usually withdraw all my salary at once, but now I am
being given the burden of coming to the bank again for more withdrawals,"
he complained.
The soldier was followed by murmurs of: "The government has failed,"
and "This is a sign of poor economic management."
It took a long wait on the sidewalk in a temperature of 25 degrees
centigrade before Given Maramba, a Harare resident, reached the
bank teller. "You really need nerves of steel to endure the torture
of those queues - I queued for a solid three hours before I was
finally served," he said, brandishing a wad of notes.
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