Zimbabweans struggled to dispose of their soon-to-be worthless cash Monday as shops and businesses refused to accept old bank notes ahead of a deadline to convert to a new currency.
In a move aimed at fighting runaway inflation, Zimbabwe’s Reserve Bank (RBZ) slashed three zeros from its currency on July 31 and set a 21-day ultimatum, which expires at midnight on Monday, for old notes to be handed in.
Many made a last-minute dash to banks, forming long queues to exchange notes for the new currency after officials ruled out any extension of the deadline.
But analysts warned many residents of the impoverished Southern African nation, particularly those living in rural areas, risked losing their savings and being stuck with bundles of notes that central bank chief Gideon Gono said would become “garden manure”.
Zimbabwe’s economy has been on a downward spiral over the past seven years, characterised by inflation running at about 1 000% and high employment with at least 80% of the population living below the poverty threshold.
Thousands of passengers trying to commute into the capital Harare were left stranded as bus operators rejected the obsolescent bank notes, defying a central bank order to accept the currency until the close of business.
In the populous township of Chitungwiza, passenger-bus operators said they were carrying “only those with the new currency.”
Many retailers also refused the old money, although those who did agree to accept payments in the old currency enjoyed brisk business.
“Dear customers, we regret to say that we are only accepting the new currency,” read a sign on tills and shelves in a supermarket in central Harare.
“I have tried several shops but they are not taking the old money,” said one dejected shopper, Senia Godzi.
“I will have to catch a bus to one of the townships where shops are still taking the old money.”
Economist David Mupamhadzi said that many people living outside the major cities were unaware that their cash savings were about to become worthless.
“Our main concern is what will happen to those in the rural areas and other outlying areas who did not hear about the deadline,” he said.
“There is never enough time and we hope the RBZ will take appropriate measures to address those affected.”
Political and social analyst Elizabeth Marunda called for an extension of the deadline.
“Should those living in remote areas with no radio and television reception be punished for not hearing about the changes? The reserve bank governor needs to consider that,” she told Agence France-Presse.
Gono, however, has ruled out “a general amnesty or extension to the deadline given in the first place”.
After announcing the switch-over, the reserve bank put a limit on amounts that could be deposited in banks in an apparent crackdown on cash hoarders often accused of fuelling a burgeoning parallel foreign currency market.
Shopowners were also barred from accepting cash payments of more than Z$100-million.
Those found with cash exceeding the limit were asked to reveal its source or forfeit the money and face prosecution for money laundering. — AFP