Tsvangirai inspects Zim banks

Tsvangirai was mobbed by desperate consumers who had formed long lines at banks to receive a single Z$1 000-dollar bank note - the maximum daily withdrawal allowed and worth only about two US dollars.

"How much can you buy with this?" the opposition leader asked one man waiting at a bank in downtown Harare.

"Not even enough for a loaf of bread," which costs at least 1 400 dollars, the man replied.

"We are suffering, we have no money," another man said, as he stood in a line that wrapped down the sidewalk in the steaming mid-day heat.

Zimbabwe, once once of Africa's most prosperous nations, is experiencing severe shortages of cash due to the country's hyperinflation, last reported at 11.2 million percent.

Banks are essentially rationing currency, allowing businesses and consumers to withdraw only Z$1 000 a day.

The restrictions have led to long queues outside banks, with some people sleeping on the sidewalks in the hope of being the first person to reach the teller window in the morning.

The central bank on Wednesday issued a new Z$1 000 bank note to ease the cash shortage, but its value is eroding by the day.

Zimbabwe's economy has been on a downturn for a decade with high unemployment and food shortages in a country where at least 80 percent of the population live below the poverty line.

Tsvangirai is set to become prime minister in a power-sharing deal with Zimbabwean President Robert Mugabe, but talks have been hung up on how the two rivals will divide key ministerial posts.

- AFP