Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

Run on Zim banks expected

Nov 27 2008 15:54

Related Articles

Zim extends bank chief's tenure

Old Mutual in Zim payout mess

Zim threatens to close banks

 

Top Stories

Cell C move sparks price war

May 27 2012 11:21

There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.

Tupperware agents incensed by fakes

May 27 2012 11:49

The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.

Another golf estate victim

May 27 2012 13:09

The oversupply of golf estates has claimed another victim.

 
Share Share line Print

Harare - Labor leaders called on Zimbabweans on Thursday to demand more money for food and medication than they are allowed to take out of their bank accounts because of tight daily withdrawal limits.

The cost of basic medications amid a cholera outbreak that has claimed hundreds of lives in Zimbabwe has required the sick or their relatives to stand in line for several days to draw enough cash.

The labour leaders' protest call also comes as the UN warns that more than five million people in the country face imminent starvation.

"Hundreds, if not thousands, of us have died not because of anything other than the imposed cash withdrawal limits," said Lovemore Matombo, head of The Zimbabwe Congress of Trade Unions, the country's main labour federation.

Zimbabwe, engulfed in an economic and political collapse, has by far the world's highest official inflation of 231m %.

The daily withdrawal limit of 500 000 Zimbabwe dollars (about $0.30) at the dominant black market exchange rate) does not buy a quarter of a scarce loaf of bread, according to the country's main labour federation.

A 2kg pack of sugar purchased in local money required four days in line at a bank or automated teller machine.

The Zimbabwe Congress of Trade Unions is calling on Zimbabweans to try and withdraw more than the Z$500 000 limit next Wednesday.

Matombo said the planned bank protests were not illegal under sweeping security laws that prohibit demonstrations without police clearance because "you don't need permission to claim your own money".

Under hyperinflation, most businesses and shops refused to accept checks from workers whose wages were paid directly into bank accounts, Matombo said.

"Workers now have to beg for their money to buy medication, for transport and to pay rents" that often also exceeded their monthly earnings, he said.

In August, the central bank slashed 10 zeros from the local currency but a newspaper that cost Z$10 in the new denominations in August cost Z$700 000 this week.

The state Herald newspaper acknowledged the zeros were back by publishing a guide to large electronic and written transactions involving quadrillions of Zimbabwe dollars showing 15 zeros, quintillions with 18 zeros and even decillions with 33 zeros used in massive deals on the Harare stock market.

President Robert Mugabe, in power since independence from Britain in 1980, blames Western sanctions for the economic collapse. But critics point to his 2000 order that commercial farms be seized from whites. The often violent seizures disrupted the country's agriculture-based economy.

Western sanctions targeting individuals and companies supporting Mugabe's regime were tightened after disputed elections in March and June that led to a power-sharing deal between Mugabe and his opponents signed September 15.

Mugabe's Zanu-PF party and the opposition Movement for Democratic Change have so far failed to agree on the composition of a unity cabinet.

On Wednesday, Mugabe left Harare to attend a United Nations conference in Dohar, Qatar, on "financing for development," state media reported on Thursday.

Earlier this week, Mugabe reappointed central bank governor Gideon Gono for another five-year term at the Reserve Bank.

In an acceptance statement available Thursday, Gono vowed to rein in the bank's "quasi-fiscal operations," its term for printing extra money and subsidizing state enterprises, measures seen as having fueled inflation and crashed the local currency.

- AP

 
 
Comment on this story
0 comments
Comments have been closed for this article.
It pays to know the cost and what you’re getting in return
May 28 2012 09:33

Investors may not have a clue what they’re paying their money managers or they type of service they’re getting, or, whether they can actually negotiate lower fees. (Reuters)

Perfin

I arranged two workshops in Cape Town at the Cape Chamber of Commerce offices as well as two computer based workshops, one on Google Adwords and another on Joomla Administrator at the training centre in Somerset West. Emarketing Workshops - http://emarketingworkshops.co.za/next-workshops 1. Interne... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

Money Clinic Do you have a question about your finances? We'll get an expert opinion.
Click here...

Loading...