By Revesai Mavetera
The Zimbabwean Economy Crisis continues to worsen despite the attempts made by the ZANU PF-led government to stabilize it through poorly thought-out economic policies that are modified and changed on a daily basis. The crisis is a result of years of mismanagement, corruption, resource looting, incompetence, and the self-enrichment of Emmerson Mnangagwa, his family, and his inner circle.
Currently, some banks like FBC and BancABC have halted certain transactions for citizens holding foreign currency accounts, known as Nostro Accounts, and have prevented customers from withdrawing their money. Journalist Hopewell Chin’ono sheds light on the situation, stating that Zimbabwe has entered another economic disaster zone with the deactivation of the Nostro accounts’ ability to withdraw cash in US Dollars or load US Dollars onto international credit cards.
Nostro accounts are used in Zimbabwe to hold US Dollars or other foreign currencies. Previously, the government was paying its workers a US Dollar component into Nostro accounts. However, the recent developments mean that the funds in Nostro accounts are no longer usable as US Dollars abroad or as US Dollar cash withdrawals. Therefore, if you have a million dollars in your Nostro account, it is only a million in name, not in actual value, as you cannot withdraw it in US Dollar terms or use it on your card. Essentially, Zimbabweans have been deceived for the third time.
There are two important reasons behind this action. Firstly, it aims to prevent civil servants from withdrawing cash, exposing that the US Dollars from the Government of Zimbabwe were not actually US Dollars. Secondly, it involves the separation of local Nostro funds and genuine US Dollars. You can only withdraw or use US Dollars if you deposit physical US Dollar cash or receive an international Telegraphic Transfer (TT). This development has significant implications for Zimbabwe.
In the midst of these challenges, the price of a loaf of bread has skyrocketed to ZW$10,000. To put it simply, the cost of bread in Zimbabwe has now been pegged at Z$10,000, even though under normal circumstances it would be priced at US$1. However, due to the dysfunctional and chaotic nature of Zimbabwe’s economy, citizens are forced to pay US$2 for a loaf of bread if they use US Dollars. The official exchange rate stands at Z$4,868, which explains the higher price for those paying in US Dollars. The situation is a complete mess.
Luke Tambarinyoka, from the Citizens Coalition for Change (CCC) presidential affairs department, expressed that the economic turmoil caused by the ZANU PF government must be reflected in the 2023 elections. In a tweet, he stated, “It’s now a run-away rate. And on 23 August 2023, we the citizens, will rate this regime and its dismal performance as reflected by the economic malaise and this run-away rate. And their rating in the watershed August poll will be a reflection of this EDiotic economic rot.”
The CCC took to Twitter and urged citizens to vote for their party in the upcoming elections to put an end to the rampant corruption and economic instability that has left Zimbabweans unable to afford basic necessities. They highlighted exorbitant prices, such as Z$9999.99 for a loaf of bread and Z$35,070.00 for a 500g packet of Cerevita, making these items unaffordable for the majority of citizens. Civil servants, who earn salaries in RTGS ranging between Z$80,000 and $200,000, are particularly affected by the soaring prices. The party criticized Minister of Finance Mthuli Ncube for his apparent lack of focus on the country’s financial woes and instead focusing on personal endeavors, such as his constituency. The CCC emphasized that Zimbabwe needs new leaders who can restore stability to the economy. They called on the people to vote for CCC in order to bring an end to the rot that has plagued Zimbabwe and left its citizens struggling to put food on the table.
