Queues of hundreds of people are becoming a common sight in Harare, with many lining up for two hours to be told they can only take out a maximum of about £200.
Many believe the banks have had to limit cash withdrawals because loans are being illegally demanded by President Mugabe’s government to force customers to take out all their savings.
At the same time the 92-year-old leader, who has been president for 36 years, takes about £2.7m in cash with him every time he goes on an overseas trip – which are very frequent, Tendai Biti, the former finance minister revealed.
He has been away from the country for nearly three weeks, travelling to Papua New Guina, Singapore and South Africa with a 60-strong delegation.
He is believed to have travelled to Singapore for medical treatment ten times this year, as well as Uganda, India, Equatorial Guinea, Russia and Ethiopia – with an estimated travel bill of £55m since January.
Locals are living in fear the economy will collapse soon following a near shut-down in 2008 when inflation rates rocketed by 5billion per cent.
The Zimbabwean dollar was abandoned after Mr Mugabe ordered 1,000bn Zimbabwean dollar notes to be printed, quickly becoming worthless and black market US dollars taking over before becoming the southern African country’s official currency in 2009.
Much of Zimbabwe’s industrial companies have had to close down due to demands white-owned businesses hand over 51 per cent to black Zimbabweans, high taxes and labour laws which make it almost impossible to sack anybody, all under Mr Mugabe’s rules.
The highly controversial eviction of white farmers has meant nearly every supermarket product is imported unlike 15 years ago when most produce was locally sourced.
Supermarket owner Vincent Hwende told The Times: “I’m struggling to pay my suppliers in South Africa.
“Before, I could order a transfer from the bank and it would be in their account a day or two later.
“Now it’s taking three weeks, or long.
“They won’t accept that. I just can’t operate any more.”