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RBZ increase cash withdrawal limit to stave off ZCTU strike
Lance Guma,
SW Radio Africa
September 26, 2008
http://www.swradioafrica.com/news260908/cash260908.htm
The threat of
strike action from the Zimbabwe
Congress of Trade Unions (ZCTU) has forced the Reserve Bank
to increase the cash withdrawal limit from Z$1000 to Z$20 000. On
the 22nd September the ZCTU handed over an ultimatum
to the central bank demanding an immediate lifting of the limit.
In the letter, the union's general council noted with concern
that 'ordinary Zimbabweans, particularly workers, are now
finding it difficult to access their hard earned money from the
bank. When they finally do so, the amount so withdrawn is not even
enough to purchase two loaves of bread or meet the daily needs.'
The ZCTU general council met last Saturday and gave the RBZ a 7-day
ultimatum, failing which a call for national action was to be made.
In a series of changes
made Thursday by Central Bank Governor Gideon Gono, the withdrawal
limit has been increased to Z$20 000, with effect from next week
Monday. Whether this will eradicate the problem of people enduring
long hours in the queue for cash still remains to be seen. Responding
to the changes Last Tarabuku the Acting Spokesman for the ZCTU said
the union's general council was meeting Friday to deliberate
on their response. He pointed out that the union had called for
a complete scrapping of the cash withdrawal limit altogether and
not the mere adjustment done by Gono.
Meanwhile the central
bank has also licenced 600 shops to sell goods in foreign currency,
in what is seen as an attempt to suppress a flourishing black market
fuelled by shortages of basic commodities. Gono said the measures
would discourage Zimbabweans from going outside the country to buy
goods and this in turn would revive struggling local manufacturers.
Under the new rules only imported items can be sold in foreign currency,
while locally produced goods like sugar, cooking oil and maize meal
have to be sold in local currency.
The Reserve
Bank has also scrapped
foreign currency restrictions on individual Foreign Currency Accounts
(FCA's) arguing this will help those who hold them to buy
from the shops licenced
to sell in forex. The US$1000 limit has been removed and individuals
can withdraw any amount. Analysts however dismissed the changes
as merely cosmetic, pointing to the need for fundamental political
and economic reforms. One of the demands put in by the ZCTU was
that employers be allowed to pay their workers in cash. Currently
employers have to seek permission from the RBZ by providing a payment
schedule. No word on this demand has come from the central bank.
Despite the signing of a power sharing deal two weeks ago the Zimbabwe
dollar has continued to plummet while prices of basic goods continue
to skyrocket.
MDC President
Morgan Tsvangirai on Friday embarked on a surprise visit of banks
battling with the cash queues in the capital Harare. People stuck
in queues in the city are said to have thanked the new Prime Minister
designate for showing concern about their plight. Despite Tsvangirai,
Mugabe and Arthur Mutambara signing a power sharing accord,
a deadlock over the sharing of cabinet portfolios and general distrust
of Mugabe has failed to ignite confidence in the process. Inflation
at over 11 million percent, unemployment over 80 percent, cash and
food shortages, all remain testament to the suffering of millions
of people.
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