The Reserve Bank of Zimbabwe moved last week to get a hold on the spiraling RTGS forex rate with a suspension of all RTGS transactions and then followed that up yesterday with a suspension internal bank transactions which meant that we now have cash, debit and err peanuts for payment.
On first look it appears as if this is a harsh move but it is something that was long overdue. There was a lot of fake money being made by the trade in forex at the imaginery RTGS rate leading to ridiculous parallel pricing.
To illustrate yesterday at Eastlea spar, a roll of sausages cost about 9 millon dollars. That is right 9 million dollars. That would mean of course that with your miserable 20 thousand from the bank you could not even dream of buying that. But Spar believed that with the minority buying and selling forex at an err astronomical rate they would make off these buy having these really high prices.
Now just round the corner next to Bon Marche is a butchery that will give you that same roll of sausages for about 20,000 dollars. Yes that is right 20 thousand dollars. Of course they didnt have debit card service but that seemed a lot more reasonable given the way things were.
Now this move puts a hold – until they find a way to beat the system again – on some serious profiteering. The market waits for a reaction because there is sure to be one to this latest move.
You see the sad thing is that patriotism only lives in a very small section of the population. The rich are dismissive of the poor and the poor hate the rich. The middle class, is well, non-existant at the moment so in reality we have nothing but a jungle that is looking for the next opportunity to make that bit of money.
These moves should be followed up by very concrete moves to create an option for making legal money. The regulations are there but they need to be enforced without exception. Otherwise then we will get back to the hell in no time…
That is of course if we get out of this bad business anytime soon. Cue Mugabe, Tsvangirai… Your turn now..