Zim bans 'unlawful hoarding'
03/03/2008 17:38 - (SA)

Harare - Zimbabwean President Robert Mugabe's government has made it illegal to possess more than Zim$500m in cash, it emerged Monday -the equivalent of 21 US dollars.

According to a new regulation published last month, anyone found with more than Zim$500m in cash will be guilty of "unlawful hoarding".

Officially Zim$500m is worth around US$16 000. But it equates to only around US$21 on the dominant parallel market rates for foreign exchange.

It is also illegal for companies to settle any bills for more than US$250m (just over US$10) in cash. That means it is now technically illegal for traders to pay for 10 litres of fuel in cash.

The new regulation has been published under the Bank Use Promotion and Suppression of Money Laundering Act.

The authorities want to maintain a tight grip on the cash in circulation. Central bank governor Gideon Gono last December blamed what he called "cash barons" for creating cash shortages and pushing up annual inflation, now more than 100 000%.

The authorities want to encourage use of cheques and cards. But power cuts mean it?s often impossible to settle bills by electronic transfer of funds.

Many schools and supermarkets do not want bills settled by cheque because of roaring inflation rates. In the five or so days cheques take to clear, traders stand to lose a significant amount of money.

I really hope the tough Zimbabwean outfitters will work out a way around this one.

So Bob and his entire cabinet should be immediately arrested for unlawful hoarding. What a super genius!

No one is going to take cheques and lose their shirt on the inflation. Wires won't work for bills either as the power is down too much. The black market will continue to dictate what is possible without regard to what is "legal". That's the very nature of the black market!

Always curious to hear what Ganyana has to say regarding these issues...but I wouldn't want him to say anything that would get the boys in trouble.

we gotta tape this whole saga and sell it to TV for a soap. could call it - as the stomach turns

There is such a shortage of Zim $ notes that most places have ceased to quote in them. The bank this morning only had 100,000 and 200,000 dollar bills. Try lugging 500 mill in those notes! Dentists bill this afternoon was quoted as 3 billion zim or $150

By next week most buisness will cease trading altogether until after the elections.

I imagine there's a good bit of "hoarding" going on with the elections coming on. Americans do it too.

Ganyana,

Any idea what happened to that millionaire that recently got arrested in Zim for currency violations? - Van someone or other. I know he has a very chequered past, but I've forgotten his name............ might be Van Hoogstraten or something similar.

I would suspect, if at all possible, that most of the individuals in Zim have started keeping their money outside the country.

Purely guessing, but if I was in that position, I'd probably keep my money in an RSA bank, and just travel to get whatever money I need, and then bring it back into the country.

Of course, that is "illegal" also...having an outside bank account. Bob has thought of everything except the future.

Well, it looks as if I will either wire transfer my anticipated trophy fees before I leave, or, after I return home! My ph is out of comms until 3/12 and since we leave St. Thomas 3/12 bound for zim, I have not the vaguest idea how to do this.

I'd like to buy a million Zim Dollars. I'll be in Jo'burg the night of 9 March if anyone wants to trade US$ for it, at the street rate, of course.

Namibiahunter

quote:

Originally posted by Ganyana: By next week most buisness will cease trading altogether until after the elections.

Hey G,
Does Uncle Bob have all his votes counted yet? Isn't it about time he got that done so he can announce his landslide victory the second the polls close?

Keep your head down....

Brian

quote:

Originally posted by Ganyana:
There is such a shortage of Zim $ notes that most places have ceased to quote in them. The bank this morning only had 100,000 and 200,000 dollar bills. Try lugging 500 mill in those notes! Dentists bill this afternoon was quoted as 3 billion zim or $150

By next week most buisness will cease trading altogether until after the elections.

My prayers are with you and your fellow countrymen that this election will be safe and peaceful. Good luck.

Clark

Can you pay with traveler checks when in Zimbabwe? Or pay your daily fee upfront and when you return wire the trophy fees?

Would outfitters be acceptable to these payment options?

quote:

Originally posted by daleW:
Can you pay with traveler checks when in Zimbabwe? Or pay your daily fee upfront and when you return wire the trophy fees?

Would outfitters be acceptable to these payment options?

I do wire transfers to an American Bank Account for the daily fees up front with the ph/outfitter. I then settle up with the trophy fees after I return home with another wire transfer.

I make sure that this is part of my contract and it works best and safest for both parties.

crl

The method that "crl" above has described seems the most practical these days. I'm sure most Zim operators have arrangements in place such as this.

You do not want to use a credit card for your expenses as it would exchange at the "official" rate. a bad deal for sure.

I believe all non- Zimbabwean hunters are required to settle their bills in US dollars however, so how many Zim dollars are allowed is not really an issue.


Les

The only part that impacts me is why the average out-of-work, hungry Zimbabwean wouldn't look at any foreign hunter as the equivalent of a walking ATM machine needing to be robbed.

Shakari - Yup Nicholas Van Hoogstraten. He is out on bail and finding the legal process in Zim very different to the UK where he, quite litterally got away with murder on a technicality (spent about a year inside). Here, get caught funding the oposition and your life is instantly hell -

Bryan - If in doubt, bring the bulk in travelers cheques. You will need a reasonable ammount of US cash for tips, souveniers etc. As pointed out - you don't want to use a credit card in this country!

Kensco - pockets get picked in town, but crime is still very low by African standards. In the hunting areas, just leave the money in the camp safe.

I am not worried about robbery; just don't want to run afoul of your country's currency regulations. We have brought cash to cover trophy fees, tips, etc. on our two previous trips. I would imagine your local slammer is not 4 star!

Anyone thought about using monoploy money or does Uncle Bob want that too.

quote:

Originally posted by namibiahunter:
I'd like to buy a million Zim Dollars. I'll be in Jo'burg the night of 9 March if anyone wants to trade US$ for it, at the street rate, of course.

Namibiahunter

i'll take you up on that offer

Well it seems that Bob may have inadveredly got one thing right.

Nicholas Van Hoog' has a reputation in the UK as being an hugely nasty man.
Slum Landlord of the very worst kind (beating up elderly tennents, cutting off heating and breaking windows mid winter etc etc to drive them out).
He also had an ex business partner turned rival killed.

Allegwely.

On this case, and this case alone, I say...go for it Bob!