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Zimbabwe
cash crisis seen lasting with too little cash in circulation
Patience Rusere, Voice of America (VOA)
January 04, 2008
http://voanews.com/english/Africa/2008-01-04-voa53.cfm
Shortages of cash continued
in Harare, Bulawayo and other Zimbabwean cities Friday and the crisis
did not seem likely to end soon according to central bank sources
who said there are simply not enough bank notes in circulation to
meet consumer and business demand which has been pumped up by hyperinflation.
The central bank sources,
speaking on condition of anonymity, said Zimbabwe needs some Z$700
trillion cash in circulation - but even with recent infusions by
the Reserve Bank of Zimbabwe the primary money supply is not far
over Z$100 trillion.
The government stopped
issuing inflation data several months ago, but independent estimates
range up to a 12-month inflation rate of 100,000%. A loaf of bread
costs between Z$1 million and Z$1.5 million in parallel market food
dealings.
There were long queues
at banks in Harare and Bulawayo today with the maximum amount of
cash disbursed to customers varying by institution.
Sources in Bulawayo said
Kingdom Bank, Commercial Bank of Zimbabwe and Beverly Building Society
were limiting customers to withdrawals of $20 million .
In Chinhoyi, northwest
of the capital, local sources said the only banks with cash were
Barclays, Zimbank and Standard Chartered, with no functioning ATMs
in the city.
Many caught in the queues
at banks are bracing for worse as shopping for clothing and supplies
for the forthcoming post-holiday school term picks up.
Correspondent
Thomas Chiripasi told reporter Patience Rusere of VOA's Studio 7
for Zimbabwe that only a handful of banks were disbursing cash in
the capital.
Meanwhile, nearly two
weeks after the introduction of new bank notes, some shops in rural
areas of the country have been refusing to accept the new notes
because they have not received word of their issuance by the Reserve
Bank.
When RBZ Governor Gideon
Gono announced the issuance of bearer cheques for Z$250,000, Z$500,000
and Z$750 000, he said teams from the central bank would fan out
into rural areas to distribute the new notes and take in the Z$200,000
notes initially scheduled to expire December 31 but reprieved earlier
this week.
Rural sources said central
bank teams have been spotted in Mashonaland and the Midlands, but
Matabeleland villagers haven't seen any central bank officials.
Villager Siyabonga Malandu
Ncube of Insiza, Matabeleland South, said thousands of rural dwellers
were unaware of the currency changes due to poor communications.
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