SW Radio Africa (London)
Lance Guma
29 September 2008
Cash queues at the banks persisted Monday, despite the Reserve Bank raising the maximum cash withdrawal limit from Z$1 000 to Z$20 000 and introducing new Z$10 000 and Z$20 000 dollar bank notes. Our correspondents in Bulawayo and Harare witnessed a massive scramble for cash as desperate depositors battled to withdraw their hard earned money from their accounts. Long winding queues were observed in major cities, including Bulawayo and Harare. Thousands of people, including mothers with babies strapped to their backs, slept the night at bank premises trying to be the first in line at the opening of business.
Last week the central bank announced an increase in the maximum cash withdrawal limit. This was seen as a direct response to the threat of strike action from the Zimbabwe Congress of Trade Unions (ZCTU). The union gave the central bank seven days to scrap the limit, arguing workers were spending too much time in the queues trying to get their own money. For some the old Z$1 000 limit was barely enough to cover transport to and from work, let alone meet any other daily need. A meeting of the ZCTU general council Friday appeared to back down on the strike threat. A statement released later read; 'The mass action penciled in for 1stOctober has been deferred while we assess, in consultation with our structures, the impact of the RBZ move to increase the daily maximum withdrawal.'
It was only in August that 10 zeroes were struck off the currency in an attempt to ease the shortages and make transactions easier, but at that time analysts warned the zeroes would quickly creep back. Those predictions came true with an almost immediate devaluation of the Zimbabwe dollar against major currencies. With inflation at well over 11 million percent central bank Governor Gideon Gono's fire-fighting techniques have been slammed as a failure. In the absence of fundamental political and economic reforms analysts say they can be no change in the situation. During last weeks tour of banks with long cash queues Prime Minister designate Morgan Tsvangirai called for the immediate assembling of a new government to deal with these issues affecting people. Whether this will happen this week remains to be seen.
Meanwhile the ZCTU has criticized the power sharing accord between ZANU PF and the MDC saying, 'people would be led by an unelected government for the next five years.' The union said they viewed the new government as a temporary stop-gap measure. 'The ZCTU maintains its earlier position on the need for a Neutral Transitional Authority as the panacea to the current electoral dispute. However, if the present arrangement is to continue, it must be a transitional arrangement that will lead to a free and fair election under a new, people driven constitution.'
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