SW Radio Africa (London)

Zimbabwe: Dollar Crash Sparks Fears of Social Unrest

Alex Bell

12 November 2008


Fears of social unrest in Zimbabwe are growing, as swelling numbers of Zimbabweans become daily victims of the crash of the local currency.

The Zimbabwe dollar hit an all time low this week, plummeting to a trading value of an average Z$28,4 quadrillion to the U.S. dollar - triggering another round of massive price increases. Analysts have said the latest collapse of the currency was being driven by the Southern African Development Community's (SADC) weekend ruling on the political impasse between ZANU PF and the MDC - with the regional body overtly siding with Robert Mugabe.

As the countries politicians have continued to wage a war of words in the form of negotiations over a unity government, Zimbabweans have been fighting daily battles triggered by the devastating economic crisis. The dollar has become valueless, in a country where hard currency is now the only acceptable form of payment. The Reserve Bank's decision to suspend the online RTGS payment system has seen many businesses struggle to stay afloat, while at the same time Zimbabweans spend days in bank queues to try to withdraw enough money to pay their bills in cash. Cheques are not accepted because of the daily changing rate of the Zimbabwe dollar, leaving people with money in the bank, but unable to buy food or pay their bills.

The withdrawal limits themselves have twice been raised by the central bank, and every increase has seen immediate price increases across the country. At the same time, most shops have stopped accepting the local dollar, and empty shelves are testimony to a collapsed economy. The South African rand and the US dollar are now the most common forms of currency, but for those who are unable to access forex, this means they will be unable to survive.

Independent economic analyst John Robertson agreed on Wednesday that the "imminent crash of the dollar has clearly already happened." He explained that the levels of malnutrition and illness are daily growing "because people are unable to buy the goods they need to stay healthy," and people are losing patience with the powers that be.

Robertson said the Zimbabwe dollar is "no longer in any way useful" and explained that the only vaguely successful businesses are those trading in forex. He added that the atmosphere on the streets is tense "as people are waiting for everything else to come crashing down."

"People are angry that the government has let the economy get to this point," Robertson explained. "We are on the verge of total social unrest."

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Author: Elder
Thu Nov 13 05:04:41 2008

True! Social unrest started a decade ago when Mugabe lost the referendum and employed venomous Jonathna Moyo and "freedom fighters" like Chinotimba to remain in power against popular will. Then he invaded farms to divert attention and that way got himself another 5 years. Now an equally rabbid Charamba keeps the evil steam engine rumbling on. Joking "Mbeki" added a year to the circus and now SADC has sealed the fate of a population already in demise. The end is now. There will be no unrest. Everyone is very weary. Simply hopelessness and death, tyranny cementing its grip in the… [Read Full Text]

Author: katz
Thu Nov 13 06:21:19 2008

Elder - it is sad to read of the despondency in your message knowing full well that you are right - the people are exhausted and the 'Prague Spring' resulting from the March 2007 election has probably been snuffed out with the events of the last week-end.

One subject that has not been discussed on this site, but which I am certain exists, is the fear that must be pervading even the most ardent of Mugabe's supporters right now. They must know now that the process of collapse of Zimbabwe as a modern functioning state is accelerating and that nothing… [Read Full Text]

Author: solutionsbyj2
Thu Nov 13 09:35:51 2008

To be honest, the 'credit crunch' will highlight the level of self-suficiency reached in Zimbabwe and the rest of the motherland. Luxuries are fine once the basic necessities of life have been put in place. The opposite of 'poverty is SELF-SUFFICIENCY' We need to keep that goal in sight if we are to survive...It is dangerous depending on outsiders for FOOD and HEALTH especially!

Author: mozguide
Thu Nov 13 10:01:39 2008

In the light of the fact that the United Nations World Food Programme and other international NGO's are feeding half of Zimbabwe's population, the idea that Zimbabwe is being forced into self sufficiency is utter drivel. Like the Zim $, comment on the Zim situation has now reached a new low.

Author: jrr562004
Thu Nov 13 11:15:57 2008

Zimbabeans are already past self sufficiency, this has already been seen. They need urgent help and retaining the present currupt govenment is not going to help. To have partizan police/army/war-0vets doing the distribution is scandalous and a disservice to the populous. Aid Organisation must be autonamous and be allowed to operate without hinderance in any form. They must be allowed access to their funds that have been deposited to ensure disribution of these foods, medicines, etc. If Mugabe refuses to do this, for any reason (even claiming that the aid organisations are political) then these organisations must pack up and… [Read Full Text]

Author: takunya_ndebvu
Thu Nov 13 17:29:10 2008

Katz, You foreigners are a problem, you are really a thorn in the flesh, you distort everything including the dates when elections were held just to score cheap points. There were no elections in March 2007. Since 2000 you have been predicting the collapse of Zimbabwe to no avail.

Christopher Dell, the former US Amb to Zimbabwe predicted that something was going to happen by July 2007, nothing happened. He shifted the dates to Dec '07, again nothing happened. He was hurriedly ejected from Zimbabwe and posted to Kabul because of his failure to give Washington a correct assessment of… [Read Full Text]

Author: johnj
Thu Nov 13 18:54:34 2008

No, no, Takunya, you have it all wrong. SADC was not acting in cahoots with old man Bob. SADC was, in fact, listening to McGee and our white brother in a black skin, Tsvangi.

McGee and Tsvangi's aim is to let as many Zimbabweans die as possible to show other countries what happens when you f@ck with the west. (Of course, Morgan is being well compensated for selling out so many of his fellow countrymen).

The easiest way to do this is to cut off all aid, deploy sanctions and allow Bob to stay in office. Bob then becomes the… [Read Full Text]

Author: takunya_ndebvu
Thu Nov 13 20:09:45 2008

Johnj (Blague), This time you are far off the mark on a number of issues. Firstly, nobody said SADC acted in cohorts with any one. If anything SADC acted in cohorts with the deal it negotiated. It does not favour any of the three parties involved in the deal.

Secondly, although you sarcastically put it, I am afraid it is true that McGee and Tsvangirai aim to see as many Zimbabweans as possible die from hunger and disease, but I differ with you on the ultimate aim - they aim to effect regime change in Zimbabwe.

If they did not… [Read Full Text]

Author: awt_independent
Wed Nov 19 22:03:03 2008

Takunya, why do you continue to talk such nonsense.

For example "it is true that McGee and Tsvangirai aim to see as many Zimbabweans as possible die from hunger and disease" What a load of nonsense.

As for Tsvangirai's aim to effect regime change, he's the opposition party! That by definition should be his aim! You are so stupid! Do you think Obama shouldnt have had the aim of regime change? Its what opposition parties do.

You have no evidence at all that says they are "training militias for an insurgency war" Why make it up? Why be divisive when… [Read Full Text]

Author: juhlman
Thu Nov 20 02:00:13 2008

Strange that anyone should be concerned about 200 MI5/CIA agents posted w/ NGO's in Zimbabwe when Comrade Bob and his CIO have sent 50 CIO operatives into Botswanna to look for the "bandit training camps".

Just like ZANU-PF/Mugabe to make up lies about their opposition training militias, and then send people to check facts! Wouldn't those 50 CIO operative be better assigned following the MI5/CIA agents?

Anyway, I used to post to point out "facts" to people who defended ZANU-PF/Mugabe. "Facts" like 231 MILLION % inflation, 80% unemployment and 40% of the native-born population of Zimbabwe living in diaspora!

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