Currency News 10-08-06

Cash chaos for informal sector
HARARE - Zimbabweans are fast discovering that the burden of having to carry huge bundles of notes is not any lighter under the new currency. Unlike in the past when all denominations smaller than a dollar were in coins, the new currency introduc

ed by Gono on July 31 has all denominations – including one cent – in notes. This is certain to create administrative nightmares for both service providers and consumers.
A commuter will need about 15 000 one-cent Zimbabwean bearer cheques for a one-way commuter omnibus ride to work.
“The problem is not how the business sector is going to handle the introduction of the new notes but the biggest challenge will be the chaos that this will cause in the informal sector where most of the business transactions are on cash basis,” says economist Anthony Hawkins. – ZimOnline

Gono lifts Z$100m limit
HARARE- Reserve Bank of Zimbabwe governor Gideon Gono on Monday ordered state security agents to stop seizing cash from individuals holding amounts below the Z$100 million limit set during last week’s monetary policy statement.
But the police and state security agents are being accused of taking advantage of the chaos in the country to illegally seize money from Zimbabweans.
In a terse statement yesterday, Gono said: “The RBZ is advising members of the public that individuals carrying up to $100 million of the old currency should be allowed passage at road blocks. This is with immediate effect,” said Gono.
He also said that while the police had the right to conduct body searches for illegal cash, individuals had a right to ask for positive identification from any state security agent. – ZimOnline

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