Crisis set to worsen as currency loses all value

 

The Zimbabwe dollar, already revalued by the government to cope with rocketing hyper inflation, sets daily record lows as the country’s political nightmare and global cash crisis take it’s toll. Zimbabweans queue for hours to withdraw their daily limit, but despite the Reserve Bank increasing the daily withdrawal limit to Z$50,000, the cash barely covers transport costs.

The economy has spiralled out of control, to the point where shops are now refusing to accept local currency, after the Zimbabwe dollar depreciated at its fastest rate ever over the weekend.

 

Professor John Makumbe from the University of Zimbabwe explained on Wednesday that “only 50% of households get periodic support from the diaspora.” He added: “These people have access to critical foreign currency, but the people who don’t are literally starving – and that is an understatement.”

 

The RBZ’s decision to suspend the online money transfer system earlier this month has also taken a significant toll on the country, with Makumbe explaining that many companies have been ruined. He added that people cannot even pay their bills because the daily withdrawal limit is so low, emphasising that “the collapse is multi dimensional.”

 

At the same time as people in their millions are beginning to succumb to hunger and malnutrition as a result of the food shortages across the country, the cash crisis is also taking its toll on critically needed humanitarian aid. Reports from relief agencies indicate that the suspension of the inter-bank transfer system is hindering humanitarian operations for NGOs, as money cannot be accessed to start crucial food distribution.

 

Makumbe explained that the country’s humanitarian crisis will become worse as the economy continues to collapse. He expressed anger that talks for a power sharing government have continued against the backdrop of suffering, and echoed that the nation is being held hostage as political bickering continues.

 

“The MDC is being forced into a corner by ZANU PF, and they have no room to back out because the people are at risk,” Makumbe said. “It is clear that the international community will not pump much needed funds into the country if real power sharing is not established, and in the mean time, people are starving.”

 

In fact 5 million people are starving, as the world sits back and watches.

 SWRadio Africa