WHERE BECOMING MILLIONAIRE IS CHILD's PLAY

THE new 200,000 dollar ‘note’ (Bearer Cheque) of Zimbabwe, which was issued on July 1, 2007 and is to be used “on or before June 30, 2008”.
WHEN I visited Zimbabwe three years ago, depreciation of the Zim dollar was gathering momentum, but the exchange rate was still somewhat respectable. One US dollar was exchanged for around 25,000 Zim dollars in the so-called parallel market, which is in fact the black market.

The official rate was, of course much lower—a third of the black market rate, if I remember well. One hundred US dollars would, therefore, earn you 250,000 Zim dollars.

This time around, however, I had to deal with quite different figures. My worth in terms of the subsistence allowances did add up to a few million Zim dollars last time but with the current exchange rate of 200,000 Zim dollars to one US dollar in the black market, I became an instant multi-millionaire.

What strikes you is the huge difference between the official and black market exchange rates. On the first day of my visit I went to a bank in downtown Harare and asked to change 100 US dollars into Zim dollars to meet local expenses, which must be paid in local currency.

The teller, an innocent young lady, was evidently perplexed. “Sir, do you have an account with us?” she inquired dutifully. I replied in the negative and wondered why a visitor could not change hard currency into local currency in a bank.

The lady referred my case to her manager, who said I could be served if I accepted the exchange rate –250 Zim dollars to one US dollar. “That will give you 25,000 Zim dollars for 100 US dollars,” the manager elaborated to leave me in no doubt of the implications of my request.

I was grateful to when I learnt of the black market rate later. In fact that was the realistic rate. For the 100 USD I got 20 million Zim dollars! It is a necessary evil to go to the black market for hard currency in Zimbabwe.

According to the President of the Confederation of Zimbabwe Industries (CZI), Mr Callisto Jokonya, that is where industry gets its hard currency as well. In fact, the industrialist claims that the Zimbabwe government also goes to the black market for forex, which he alleges is responsible for pushing up the exchange rate.

In an interview published in the current edition of ‘New African’ magazine, Mr Jokonya claims that the black market rate shot up when the government raised 100 million US dollars to settle external debts owed by the national airline and the power utility.

Asked if he had evidence that the government bought that much money from the black market, he replied: “Oh, that, yes, definitely. That we have. We can trace it and the government knows it. They had to make that payment and we know they made that payment.”

The black market exchange rate is realistic because the 25,000 Zim dollars I would have been paid for 100 US dollars per bank rate is the price of the daily newspaper, the ‘Herald’. I could hardly buy anything else worth mentioning with that kind of money.

Commuter bus fare is 40,000 Zim dollars while a loaf of bread goes fore 30,000 Zim dollars officially. A 300mls bottle of drinking water at the middle class hotel I stayed in cost 75,000 Zim dollars, while one meal (the choice was often between pork and chicken with rice or maize meal owing to the shortage of supplies) was charged 300,000 Zim dollars. Locals were charged 5.5 million Zim dollars per night for accommodation.

Taxis charge a minimum of 500,000 Zim dollars per trip. On my arrival, I paid 2.5 million Zim dollars for a taxi ride to the city centre, about 20 minutes away.

I invited three colleagues for lunch—a combination of chicken, beef with ugali—at Mazowe hotel, a former resort for white farmers in Mazowe, Mashonaland Central province. Two of us had two beers each, while the other two took juice. The bill? Some 2.6 million Zim dollars.

But my millions notwithstanding, I found no incentive to do any shopping in Harare. Shops have limited variety and the prices have gone up considerably compared to three years back. A suit for ladies bore a 20 million Zim dollar price tag. I could buy it for half the price previously.

Well, I have since recovered from the euphoria of seven-digit figures. I was advised that it is prohibited to export the Zim millions. Even if that was allowed, those dollars are not accepted anywhere outside Zimbabwe.

SOURCE: DAILY NEWS