Now the money's gone truly mad

Why the cost of foreign currency on the black market makes a nonsense of government policy

By the time you read this it will be out of date. But at the moment of writing, around 10am on Monday October 22, here in Bulawayo and dealing on the black market, one single US dollar will cost you two million Zimbabwean dollars. I've been speaking with the black market currency dealers, this is what they tell me, and they are the people who know.

The government see it differently. They say it only costs 30,000 Zimbabwe dollars to buy a US buck. That's the official rate. It is also nonsense. As is the government's estimate of the inflation rate for September, which they set at 7,982 per cent. Independent estimates put it around 25,000 per cent.

This is bad news for almost all of us, of course, and the problem gets worse every day as we scramble to find more real cash to buy simple household items - cooking oil, soap, etc. - from neighbouring nations, because such things are hopelessly scarce in our own shops. Yet there are some people who are thriving in this fiscal jungle. Can you guess who they are?

Yes, right, they're the currency dealers themselves. "Osiphatheleni" as we call them. I spoke to one such dealer this morning, a charming lady called Grace Shoko, who told me that her best customer at the moment is the Reserve Bank of Zimbabwe itself.

"There has been massive demand for the US dollar since Friday," she said. "Central Bank agents are buying in large volumes."

Meanwhile the government is under increasing pressure to print more money, as the speculators draw vast amounts from the banks to buy hard currency for future speculation. The government has introduced regulations to limit withdrawals to 20 million Zim dollars at a time, but the dealers easily get round that one with some well-placed bribes.

And so it goes on. It leaves most of us in ruin and despair, but it leaves the currency dealers in clover.Grace told me: "I am so happy with the rate. This means I can finish renovating my house, and I am planning a massive Christmas party for my family and other currency dealers."

Meanwhile I've just found out how much it now costs me to commute to and from work today. The answer - one million dollars. Tomorrow I may just stay in bed.

Comments

[henry]

lest just revert to the old burter and trade system, 2 million for a singe dollar, Mugabe pliz just go

[peter]

Surey stuff should make Mugabe ashamed but he does not of course.
But Zimbos, lets demostrate at the state house

[DICKY JEMWA]

THE MAN FROM BULAWAYO IS A GREAT LIER,THINGS ARE BAD IN OUR ONCE LOVELY ZIMBABWE BUT THE ZIMDOLLAR IS NOWHERE NEAR 2MILLION OR 1MILLION IF YOU ARE BUYING CASH TODAY IT WAS ZIM$850000 TO US$1.I AM A FOREIGN CURRENCY DEALER IN HARARE.PLEASE WHEN REPORTING TAURAI CHOKWADI MUSANYEPERE VANHU.

[masterblaster]

Unbelievable! When I was in country, it was a beautiful place. Granted, we were protecting the farmers using strong-arm tactics but we were trying to instill security so the people could eat. Mercenaries at work for the good of the people. Now, look what happened when this action stopped.

[hungryman and his family]

masterblaster, where are you?

[arthur]

Poor Jemwa, am in Bulawayo and the rate is 2 million. just catch a bus to Bulawayo ans see it for urself

[johns]

i am in kwekwe its fake about the rate is not 2 million

[Dave Mwila]

My comment is on Mr/Dr/Comrade/Whatever title. Does Mr President take a look at his own facial image in the mirror? He is totally aged. When Mugabe came to power in 1982, some of us were very young men just around 30 years of age then. Now I am around 55 years of age and Comrade Mugabe still wants to remain in power. What a selfish individual he is. If I am feeling this old, how about him, who is around 83/84. This is the time for Mugabe like ( Nelson Mandela,Dr Kenneth Kaunda of Zambia and Julius Nyerere of Tanzania), to stay quietly back at the farm house and give advice to young politicians. This simply means that a lot of young men, like myself have missed out in filling gaps of people like Mugabe who wants to stay in power forever as if he is part of a kingdom where a king reigns until his death. It will be even more embarassing for Mugabe to lose elections as compared to voluntary retirement. If he loses elections, enemies will not let him go quietly. It will be their turn to make him dance to their tune. Comrade, Robert Mugabe, it is time you called it quits to save your own skin.

[Abdulah]

the rate has eased a bit in Bulawayo
its now 1.5 million

[Mike du Plessis]

Mugabe has lost the plot. He wanted to empower us but has failed terribly. How can you have one US dollar trading for this much when at independence, it took 2 US dollars to buy one Zim dollar. It is absurd and if this oaf-octogenarian dictator of sorts is allowed to win the elections, then Zimbabwean people are daft, it will have confirmed that somethink is terribly wrong with Zimbos

[Warmfeet]

Mike du Plessis, you've got it wrong...the people of Zim dont have the choice of who leads them. Mugabe knows how to fix things at the ballot box. With the army and police at his beck and call, its easy. Zimbabwe's problem is that it doesn't have any oil, or things would have turned out differently. As long as he keeps his army generals sweet, he's safe...so he has to keep printing money.

[nike free run]

don't criticize him and let him stick with what he wants. Empowering your child with the freedom of choice when it comes to reading will greatly increase his interest for it.

[Ugg Boots Deutschland]

Remember, that attachment challenged children have a threshold of tolerance when it comes to certain activities, and when they reach it, they want out. By making him listen a bit to your book will result in training his listening skills, so he can actually enjoy the process of reading aloud

[Ugg boots Sale]

Do not mistake the child's refusal to listen to your book as an act of defiance.