Cash-Strapped Banks Mobbed In Zimbabwe

Ananova/AP ^ | 7-26-2003

[blam]

Cash-strapped banks mobbed in Zimbabwe

Armed riot police have been out in force for a second day as thousands of Zimbabweans mobbed banks, unable to access money or cash cheques.

On Friday, police dispersed a crowd who smashed a glass window of a building society in a desperate attempt to cash pay cheques.

Bank tellers are only able to give customers 10,000 Zimbabwe dollars (about £7) due to a cash shortage created by the country's economic crisis.

President Robert Mugabe's government is unable to print enough currency to keep up with inflation and banks have run out of the imported paper and ink needed to print cheque books.

Zimbabwe's economy is devastated, with unemployment at 70% and inflation topping 300% a year.

Many of the estimated 1.3 million Zimbabweans who held jobs were paid on Thursday but are still unable to access their money to pay month-end bills.

"This is just the beginning and it is bound to get worse," said economist John Robertson. He said the government's plan to print more notes in higher denominations would not counter the economic collapse.

Zimbabwe is suffering acute shortages of hard currency, as well as imports such as gas, medicine and food.

Fuel shortages have crippled industry and transportation.

On the thriving black market, fuel and the staple, cornmeal, fetch five times the official price. The official exchange rate is 824 Zimbabwe dollars to the US dollar, but on the black market the American dollar buys up to 2,700 Zimbabwe dollars.

© Associated Press

Story filed: 19:01 Saturday 26th July 2003

[blam]

Ping.

[Commander8]

Ahh, the success of socialism in Africa. *sarcasm*

[friendly]

This is just a slightly more extreme example of democrat party financila policy.

[yankeedame]

Still, all things considered, life is still much better for the black man than it was under white minority rule. (/sarcasm)

[sgtbono2002]

Yup: no doubt about it the black man in Africa is definitely better off under black rule.

[xp38]

When paper and ink to print checks is unavailable you gotta know things are not exactly going swimmingly.

[blam]

"When paper and ink to print checks is unavailable you gotta know things are not exactly going swimmingly."

Planning has never been an African strong point.

[Montfort]

I'm suprised Mugabe hasn't already stolen all the money and given it to cronies like he did with the land.

He could have taken the money the way Argentina did--seize everyone's savings and hand them soon-to-be worthless government bonds. It was Argentina, wasn't it?

Frankly, I am suprised the Robespierre has shown this much restraint.

They should call it the "Ig-Nobel" Prize.