 Two currencies are now useable at the same time, creating a nightmare for those in the businesses sector and making it complex for the consumer.
RBZ governor Gideon Gono slashed 10 zeros off the currency on Friday and re-introduced the old coin system. The ‘new’ currency will run side by side with the family of bearer cheques until the end of this year. Daily cash withdrawal limits were also increased from Z$100 billion to Z$2 trillion, now re-valued to Z$200.
But although the daily withdrawal limits have been increased to help consumers access more of their own money to cope with the hyper inflation, some building societies have reportedly increased the minimum balance that you need to hold in your account to Z$5 trillion, now Z$500 re-valued. Our Harare correspondent Simon Muchemwa said Beverley and CABS have done this, making it impossible for many workers to access their own money, as most people earn below the Z$5trillion mark. The other confusing aspect is – if you don’t have Z$5 trillion to keep in your account, are the building societies forcing you to close your account?
Muchemwa said: “Z$5 trillion is a lot of money and a lot of people over the weekend were actually busy trying to convert their accounts to other accounts, which would require less minimum balances.”
While the re-introduction of the old coins have brought some immediate cash relief for those who had held on to their previously unusable coins, the MDC says the measures are a desperate attempt by the RBZ to cure the symptoms rather than the root cause of the economic crisis.
Elton Mangoma, the MDC Secretary for Economic Affairs, said in a statement: “The announcement that old coins are coming back into circulation will benefit people who do not have a banking culture, which will send a wrong signal to the market at a time when confidence building should be a top priority to the central bank.”
Mangoma, who is one of the main negotiators for the Tsvangirai MDC at the
talks, said the central bank should know how much money is in circulation
and forcing people to scrounge around trying to find their old money makes
it impossible to know how much is on the market. This will further push up
inflation. Analysts predict inflation is currently running at more than 15
million percent.
The MDC officials say the only way out of this mess is to address the crisis
of governance and legitimacy.
 SWRadio Africa