A CURRENCY ON THE EDGE
I bought two loaves of bread for ZWL$700 (about P24) on Monday and it dawned heavily on me that history will soon repeat itself.
The rate at which our local currency is losing value against the US dollar is scary; if the trend continues, we will be millionaires before year end.
It will be the second time in my lifetime to be classed as a millionaire, albeit a poor one.
Currently, US$1 is trading for ZWL$350 on the black market and about ZWL$150 at the official auction market, which is just on paper anyway as only a few corporate entities can access it. In reality, and practically, it’s the black market that runs our economy, hence the price of bread is that much in our local dollar.
And with inflation currently pegged at 73 percent, next week, I will be telling you that bread is now selling for ZWL$500 a loaf.
It’s ironic that I bought bread for that much on our Independence Day, the day that President Emmerson Mnangagwa claimed in his speech that the economy was growing and things were looking up.
If the economy was on the rebound like he claims, how come our highest denomination, which was recently introduced, cannot even buy a packet of four plain buns?
A 100 dollar note was introduced early last week but one needs four of them to buy a loaf of bread, is that a sign of a growing economy? We surely need not be economists to see that the ship is sinking again!
I am sure the powers that be are fully aware of what is happening on the ground though trying their best to ignore the reality – an image of an ostrich burying its head in the sand comes to mind. It could also be that they are quacking in their boots and have no clue what to do to tame the already runaway inflation.
Mind you, next year, we are going to the polls. I wonder what they’ll promise us, what lies will they tell us when they have failed to run the country to an extent of hyperinflation; history repeating itself?
No wonder some people are already talking of a Government of National Unity (GNU) and dollarisation of the economy seeing that it saved the country in the past.
During the 2009-2013 GNU, under the leadership of the late former president, Robert Mugabe, and late opposition leader, Morgan Tsvangirai, the economy was dollarised and there was that economic stability that most people long for.
We could plan and budget, life was literally ‘flowing’ hence even to this day we still talk about that era. If it takes power-sharing to once again bring stability to Zimbabwe, can it be so because removing Zanu PF completely from power through the ballot has proven to be a futile exercise.