Sunday, August 10, 2003

Mugabe bans cash 'hoarding'

A few days ago, to ease the cash shortage, Zimbabwe introduced travellers' cheques for local use. And now the government has introduced measures that require people and businesses to bank cash not immediately needed and those who hoard their cash will be penalised (how, it's not clear). The Central Bank had earlier withdrawn the highest denomination banknote to also stop hoarding.

The Mail and Guardian reports that people in Zimbabwe have to line up, sometimes for days, to withdraw their salaries from the banks ... and withdrawals are limited to Zim$5,000. "Armed riot police are regularly called out [to the banks] when frustration boils over into disorder."