The Zimbabwe dollar hit an all time low this week, plummeting to a trading value of an average Z$28,4 quadrillion to the U.S. dollar – triggering another round of massive price increases. Analysts have said the latest collapse of the currency was being driven by the Southern African Development Community’s (SADC) weekend ruling on the political impasse between ZANU PF and the MDC – with the regional body overtly siding with Robert Mugabe.
As the countries politicians have continued to wage a war of words in the form of negotiations over a unity government, Zimbabweans have been fighting daily battles triggered by the devastating economic crisis. The dollar has become valueless, in a country where hard currency is now the only acceptable form of payment. The Reserve Bank’s decision to suspend the online RTGS payment system has seen many businesses struggle to stay afloat, while at the same time Zimbabweans spend days in bank queues to try to withdraw enough money to pay their bills in cash. Cheques are not accepted because of the daily changing rate of the Zimbabwe dollar, leaving people with money in the bank, but unable to buy food or pay their bills.
The withdrawal limits themselves have twice been raised by the central bank, and every increase has seen immediate price increases across the country. At the same time, most shops have stopped accepting the local dollar, and empty shelves are testimony to a collapsed economy. The South African rand and the US dollar are now the most common forms of currency, but for those who are unable to access forex, this means they will be unable to survive.
Independent economic analyst John Robertson agreed on Wednesday that the “imminent crash of the dollar has clearly already happened.” He explained that the levels of malnutrition and illness are daily growing “because people are unable to buy the goods they need to stay healthy,” and people are losing patience with the powers that be. Robertson said the Zimbabwe dollar is “no longer in any way useful” and explained that the only vaguely successful businesses are those trading in forex. He added that the atmosphere on the streets is tense “as people arewaiting for everything else to come crashing down.”
“People are angry that the government has let the economy get to this point,” Robertson explained. “We are on the verge of total social unrest.” – SWRadio Africa