For the entertainment and enlightenment of the members I though I should start a regular feature - How far the Zim Dollar has sunk and listing our multiple exchange rates. I will update this weekly when the dollar is falling fast but monthly otherwise.

There are 4 exchange rates that will intrest hunters.

1) Official - this is the exchange rate you get if you are stupid enough to use a credit card here.

2) Tourism Industry rate. This is the exchange rate applied to all money that the operator runs through his books and the exchange rate used to calculate a PH's pay.

3) Bank cash buying rate- ie what you, the tourist should get from a bank if changing cash

4) the black market rate, which is what the price of everything is based on.

So For the 15 Feb 2006

1) 1US$ = Z$30,000
2) 1US$ = Z$75,000
3) 1US$ = Z$102,000
4) 1US$ = Z$ 175,000

You guys have it so cushy it is absurd.

which is cheaper firewood or money - gives new meaning to term "money to burn"

I'd like to be the ink supplier to the mint.

I remember 5 years ago my PH in Zim was talking about having to spend over $1 Million for a set of tires....how things change.

Ganyana, What will $1MM Zim buy today?

I suppose a hundred dollar bill is still the highest unit of paper currency?

Good grief...in May, 2005 were thrilled to get 25,000 to 1 black market rate for changing $1,000.00 US for pocket money. That was a great rate at the time.

Nitro, I believe they are now printing 50,000.00 Zim bearer notes over existing blank Zim notes. Even at that you have to carry more than 3 to 1 so it must take a backpack to tote enough money to buy a pair of Courtneys.


Perry

The only two proper notes in circulation are the $500 and $1000 dollar bills. We then have "bearer cheques". ie a government "cheque" with an expirey date. Mostly these are "funy money" All the $5000, $10,000 and $20,000 "cheques" are printed on old $50 notes. Somone kept ordering basic notes from the supplier in germany long after $50 ceased to be a useful note. The basic notes the watermark, metalic strip with value imprinted and the $50 embossed like the US Bills have. Local printer then finished the notes off. So....we just turned the old 50's into new notes, but now we have run out of old 50's so the new $50,000 Bearer cheques are new notes. The picture on the back is meant to be victoria falls but it actually looks like Zimbabwe burning- at least that is how everbyody interprets the picture!

Well- a policeman now earns $8.5 million a month after deductions... And a pair of courtneys is 17 million...

The 50,000 notes are still not in wide circulation so most buisness deals are conducted in bank sealed bricks of 20,000 notes (10 million in a brick) A large briefcase can hold ten bricks.

A decent second hand landrover I was looking at was quoted this morning as being "280 bricks" ie 2.8 Billion

Yahoo lists the Zimbabwe exchange rate as 94,261 to the US dollar today.

So, a buff hunt is 1-2 BILLION dollars!

Maybe I should emigrate, it will be my only chance ever to call myself a billionaire. Hey I can get in the same league as Bill Gates. Aahh its the wrong currency.

Jaco

Why not try an eye for an eye and a dollar for a dollar, at least worth trying....

It is cheaper to use a $100 bill than toilet paper

Literally !!!!

This weeks update- 20-2-06

1) Official- Z$30,000 : 1US$
2) Tourism - Z$75,000 :1US$
3) Bank cash buying rate Z$102,000:1
4) Black Market Z$185,000:1

So, 3 million im for a handgun hunting permit will set you back US$40

Talking about the Zims currency ..

Why didnt I think of this, it is the easiest way to pay your bills (-:

Maybe even the poorest of poor on AR can now afford a hunt in Africa, just get printing ( ha ha)

Peter
---------------

Govt Prints $21 Trillion to Pay IMF

Zimbabwe Independent (Harare) February 17, 2006


GOVERNMENT printed a staggering $21 trillion to buy foreign currency to pay off International Monetary Fund (IMF) arrears, Reserve Bank governor Gideon Gono said yesterday.

The move, which will avert expulsion but not avail much-needed balance-of-payments support, is set to stoke inflation and push the local currency against the wall.

Gono said printing money and resultant broad money supply growth was the major driver of inflation in 2005 and has spilled over into the current year. He said the country had no choice but to print money to pay its IMF arrears.

Printing of money fuels broad money supply growth which, together with the yawning 8,6% budget deficit and other factors such as state borrowing, is the major cause of inflation.

Broad money supply growth has been on a sharp upward trend, from 177,6% in January to 411,5% in November last year. Inflation this week surged to 613,2% for January from the December rate of 585,8%.

"The collectivity of Zimbabweans must realise that this high growth in money supply was occasioned by printing of $21 trillion to buy foreign currency to pay the IMF," Gono said.

He said there was no budget for the IMF payment in the 2006 financial year and the money could also not be feasibly absorbed in a single fiscal year "without imposing a perilous squeeze on critical public sector services".

Gono's disclosures yesterday effectively settle the question of where the government got the foreign currency to pay the IMF. Zimbabwe has paid a total of US$210,6 million to the IMF in recent months. This sparked a storm of controversy with accusations by some businessmen that the money was seized from corporate foreign currency accounts.

South Africa-based tycoon Mutumwa Mawere accused the central bank of raiding his nationalised companies to pay the IMF.

Zimbabwe on Wednesday made a further payment of US$9 million to the IMF to settle its remaining overdue financial obligations to the General Resources Account (GRA).

However, Zimbabwe still has substantial overdue obligations to the Poverty Reduction and Growth Facility (PRGF)-Exogenous Shocks Facility Trust (ESF) amounting to US$119 million.

"The clearance of GRA arrears by Zimbabwe has no effect on the application of the Fund's procedures for the treatment of outstanding arrears to the PRGF-ESF Trust," the IMF said.

"Zimbabwe, therefore, remains excluded from the list of PRGF-eligible countries."

Although the debt payment will guarantee that Zimbabwe will not be expelled from the IMF, it will not get critically needed balance-of-payments support.

Zimbabwe has been given four successive six-month grace periods to settle its arrears and introduce economic reforms to avoid expulsion from the IMF.

The IMF board will next month look into the other sanctions against Harare which include the suspension of Zimbabwe's voting and related rights, ineligibility to use fund resources under the GRA and declaration of non-cooperation, as well as suspension of technical assistance.

Zimbabwe was on September 24 2001 declared ineligible to use the general resources of the IMF, and removed from the list of countries which could borrow resources under the PRGF due to non-payment.

28-2 2006

this weeks rates zim $ to US$
1) Official 30,000:1
2) Tourism 75,000:1
3) Cash Buying Rate 102,000:1
4) Black Market 205,000:1

So, for US$5, you can be a zim Millionaire

If I may ask what might be a dumb question.

What do you do to purchase normal everyday items, such as food, fuel, etc? Do you have to carry a backpack full of bills to make your purchases?

Would one me better off to carry a large amount of cash for purchases in Zim? How about hotels, restaurants, etc? It seems it would be silly to use a card with the wide variances in exchange rates.

Are there other ways of commerce? Do everyday businesses take foreign currancy?

quote:

Originally posted by Balla Balla:
Talking about the Zims currency ..

Why didnt I think of this, it is the easiest way to pay your bills (-:

Maybe even the poorest of poor on AR can now afford a hunt in Africa, just get printing ( ha ha)

Peter
---------------

Govt Prints $21 Trillion to Pay IMF

Zimbabwe Independent (Harare) February 17, 2006


GOVERNMENT printed a staggering $21 trillion to buy foreign currency to pay off International Monetary Fund (IMF) arrears, Reserve Bank governor Gideon Gono said yesterday.

Hey the Germans tried this in the 1930's and we all know what resulted from the hyper-inflation and economic and civil disorder there.

Except Zimbabwe already has a dictator.

To put it in context ganyana how much would the following (everday essentials ) cost :-

Bottle of coke
Loaf of bread
Bottle of beer
Pint of milk

Ah, but they have a cunning plan. It's gotta be cheaper for people to use cash as toilet paper rather than the real thing....... that saves the Governmunt the cost of destroying the excess currency and as it's constantly being flushed, they can just continue to print more......

quote:

Originally posted by metalman29:
If I may ask what might be a dumb question.

What do you do to purchase normal everyday items, such as food, fuel, etc? Do you have to carry a backpack full of bills to make your purchases?

Would one me better off to carry a large amount of cash for purchases in Zim? How about hotels, restaurants, etc? It seems it would be silly to use a card with the wide variances in exchange rates.

Are there other ways of commerce? Do everyday businesses take foreign currancy?

When I was there last year, the only way to buy fuel was with US $$. I also used US $$ to buy all my curios. The only thing I used zim $$ for was beer and food.

quote:

Originally posted by Ganyana:
28-2 2006

this weeks rates zim $ to US$
1) Official 30,000:1
2) Tourism 75,000:1
3) Cash Buying Rate 102,000:1
4) Black Market 205,000:1

So, for US$5, you can be a zim Millionaire

i spoke to Alan Vincent today 28th he is in America right now and told him about the 205,000:1 he replyed he heard it was as high as 250,000 a couple days ago, I dont know who or where in Zim he talked to but my point isnt to argue, its an observation, I think the currency is getting weaker faster than ever. Wow God less those being hrt by this.

Nevster //

This whole pricing thing and the currency exchange rate makes it (on the surface) seem that Zimbabwe is a hellish expensive place to buy everyday food itemes, when in reality ( provided you can get them) it is ACTUALLY DAMM CHEAP if you have overseas or foreign currency especially US Dollars

Of cource for the locals it is bloooooody expensive as they are paid in Zim dollars and inflation is getting higher by the hour

For visitors or those with US Dollars it is SUPER CHEAP ..

For Instance / Many bakeries in Zimbabwe have hiked the price of bread by more
than 50%, increasing the misery of ordinary consumers, a state-controlled
newspaper reported on Monday.

President Robert Mugabe's government says the new prices are "illegal and
mischievous", the Herald reported. Bread is a controlled product in
Zimbabwe, and bakeries are supposed to sell a loaf for 44 000 Zimbabwe
dollars ($0.44).

But bakeries and supermarkets in the second city of Bulawayo have hiked the
price to as much as 70 000 dollars ($0.70), the paper said.

In New Zealand we pay about 2 US dollars for a loaf of nice bread, in South Africa it is about 3 rand I believe so in Zims it is ONLY .70 cents so therin lies the paradox ..

The locals are living like rabid dogs and the visitors with foreign currency are living like KINGS as they have the earning Power.

Peter

How is Bobby still alive?

Metalman and Nevster - Almost all purchases are made in cash. There are no credit cards....a few banks issue debit cards but you have to pay 10% surcharge if you use one... Very few people or shops will take a cheque. My wife is Lucky- she's White and well known - so the local supermarket will take a cheque from her. But generally you flick over thick bundles of 20,000 dollar notes. If they still have the bank elastic band round them, most people couldn't be bothered to count them and just assume that the bundle is 2 million. Packets of 5 bundels (ie 10 million) come sealed from the banks. They are always short, as the bank staff always nick some of the cash when they are packing them, but provided the bag is sealed it is taken as 10 Million. In my normal day bag, I carry a Smith 329, cell phone, pen note book and can squeeze 20 million in at a push...

Coke - Z$35000 for a 300ml (9oz) bottle with a $4000 deposit on the bottle
Bread-A government correct loaf, made out of lots of yeast and corn flower - $44,000. One that is worth eating (wholewheat) $70,000
Beer - $70,000 for a 375ml bottle ( + $5000 deposit) Quarts- $120,000 (the bottle tops are the most expensive item in a bottle of coke or beer- $20,000 each)
Milk Z$ 200,000 a pint
Petrol US$ 1 per L (US$ 3.50 per gal) It is available in Zim dollars- bought yesterday at Z$200,000 per L

So Robber Bob has brought prosperity to Zimbabwe after all. Everyone is a multi-millionaire!

back from zim yesterday - 225,000:$1

US May Toughen Up Sanctions On Zanu (PF)
Business Day (Johannesburg) March 2, 2006

THE US has said it is considering taking tougher measures against Zimbabwe's ruling elite to try to bring about change in President Robert Mugabe's authoritarian government.

Speaking in Johannesburg earlier this week, Bobby Pittman, recently appointed US principal deputy assistant secretary for Africa, said: "We are in the process of discussing other measures."

Pittman would not go into details of what was being considered by the US administration, but did voice a degree of frustration that targeted "smart sanctions" against the elite of the ruling Zanu (PF) were not bringing about progress in Zimbabwe.

Pittman is the deputy to US Assistant Secretary of State for Africa Jendayi Frazer, who until July last year was the US ambasasador to SA.

He has been in his post for nearly two months, and was in SA briefly earlier this week after a visit to Zambia. Pittman said that having tightened the sanctions on Zimbabwe to include barring members of the family of Zanu (PF) senior officials from visiting the US and holding bank accounts in the US, these restrictions would remain in place.

However, he did hint that in view of the "flaw in sanctions against Zimbabwe" being the absence of implementation by Zimbabwe's neighbours of similar restrictions, other measures would be considered.

He did not say what these would be.

Pittman pointed to the quick criticism of the African Union of the military coup in Mauritania as a source of bringing pressure on the country's new government to move toward elections.

"It is very important how our partners in SA and the Southern African Development Community see the situation in Zimbabwe," Pittman said. He said that positive development across much of sub-Saharan Africa meant Zimbabwe's crisis had become an exception on the continent.

Meanwhile, Zimbabwe's central bank governor Gideon Gono said this week the country spent $135m last year importing food to make up for poor harvests, the Herald newspaper reported yesterday

4-4-2006

this weeks rates zim $ to US$
1) Official 30,000:1
2) Tourism 86,000:1
3) Cash Buying Rate 102,000:1
4) Black Market 210,000:1

NB- unless you have a special foreign currency account (ie are a registered safari operator) travelers Cheques get changed at the official rate of 30,000:1. Some bastard gave my tracker and I a tip in travelers cheques

With you as a PH, you are lucky he gave you anything other than a Summons to Appear or a kick in the testicles.

Perry

quote:

Originally posted by Ganyana:
4-4-2006

this weeks rates zim $ to US$
1) Official 30,000:1
2) Tourism 86,000:1
3) Cash Buying Rate 102,000:1
4) Black Market 210,000:1

NB- unless you have a special foreign currency account (ie are a registered safari operator) travelers Cheques get changed at the official rate of 30,000:1. Some bastard gave my tracker and I a tip in travelers cheques

Do you every head over to the US? Or can you make a special trip to RSA to get a better exchange?

Sierra - Operators have to bank the money recieved from a hunt - officially at the tourism rate although there are ways of improving on this- in order for the trophies to be exported. When you hear of somebody complaining that he hasn't got his trophies it is often- although not always- that the money wasn't banked or enough money wasn't banked. There are legal minimum charges. This is often the problem with South African operators that see the chance for a quick buck taking folks hunting on an occupied farm. Officially all the money from the hunt (including tips) has to be banked.

Of course one can save TC's untill one visits the US or give them to PWN and make him pay double - Perry if you thought one meal a day and a few good rusks were short rations you ain't seen Nothing Yet (B.T.O.) for that comment!

In 1993, I spent a night in a hotel in Harare (after flying in from Johannesburg). I was dumbfounded to be handed a bill next morning (right before flying out to the camp) that read about $1300!. While I was prepared to spend some money in Africa, my heart nearly stopped! Today, I gather that guys had better be prepared to do some quick arithmetic in their heads -and even better than me!

I wonder what this is going to do to the exchange rate?


Zimbabwe: Govt to Print $60 Trillion to Meet Salary Bill


Zimbabwe Independent (Harare)

April 28, 2006
Augustine Mukaro and Shakeman Mugari


GOVERNMENT will have to print large sums of money to fund the bill for soldiers' and teachers' salary increments in view of its limited $30 trillion budgeted for civil servants this year.

Experts say government will need to print close to $60 trillion to fund the salary hikes announced on Wednesday which they say will see inflation going through the roof. The move is widely seen as an attempt to pacify restless soldiers and an army of civil servants who have been complaining about low salaries and poor working conditions.

They said the timing of the increases was suspicious. It appeared designed to prevent civil servants and members of the uniformed forces from supporting a possible call for mass action by the MDC.

Morgan Tsvangirai has been using low salaries as his trump card in his nationwide campaign to drum up support for mass protests. He even paraded payslips for civil servants in his bid to rally them behind him in the proposed winter mass protests.

"There is no point in continuing to watch with trepidation a small nationalistic class, aided by a corrupt and parasitic bureaucracy and supported by desperate opportunists wreak havoc on the national cake," Tsvangirai said in his Independence Day message.

Zimbabwe Defence Forces commander General Constantine Chiwenga and Police Commissioner Augustine Chihuri attended the Wednesday press conference at which salary increases were announced, apparently to show solidarity with government.

President Mugabe has also heavily militarised government operations with several parastatals now led by army or ex-military personnel.

However the salary increases that will stoke inflation. Government has often resorted to taking pre-emptive measures to prevent protests. One such measure was the widely condemned slum clearance Operation Murambatsvina last May.

Government also launched Operation Maguta to avert possible mass protests over food shortages created by its populist land reform programme.

Zimbabwe's poverty datum line has risen to $35 million after inflation recently surged to 913% against a backdrop of a wave of price increases across the economy already reeling from shortages of foreign currency, fuel, electricity, food and basic commodities.

Trebling of the salaries of soldiers and teachers will multiply by three government's wage bill which is already unsustainable.

Government allocated $30 trillion for the public service wage bill this year and the salary hikes mean the bill will go up threefold.

The International Monetary Fund (IMF) has complained about Harare's wage bill. Government's fiscal deficit widened substantially in 2005 to 11,5% of gross domestic product from 4,7% in 2004 due to high spending. The wage bill rose from 15,5% of GDP in 2004 to about 20% last year, a level that is very high by international standards.

Government will now have to print $60 trillion to foot the bill.

Recently, the RBZ printed $46 trillion to pay the IMF and finance its operations, with President Mugabe's blessing.

Economists have warned further printing of money will increase inflation to levels way above 1 000%. Imara financial services group, a regional firm, said this week Zimbabwe's inflation will reach over 1 000% by the end of the month.

Opposition MDC defence spokesman, Giles Mutsekwa, yesterday accused government of raising salaries of security forces and civil servants to bribe them to thwart mass protests. "We are not opposed to improving the welfare of our civil servants," Mutsekwa said.

"We are just concerned about the timing and the discrimination in the whole process. If government is sincere about improving the welfare of workers, they should not wait for a crisis to unfold for it to raise their salaries."

Highly placed sources in the ZDF said the urgency to increase salaries took centre stage three weeks ago.

Chiwenga reportedly told President Mugabe during a briefing that soldiers needed incentives to deal with the protests mulled by the opposition.

"Chiwenga presented a salary increase proposal to Mugabe," a source said. "The president endorsed the proposal after realising how worse off defence and other uniformed forces had become.

"Following the endorsement, the increases were expected to be effected in April but were blocked at a ministers' caucus where Education minister Aeneas Chigwedere said his ministry was already broke," the source said.

Check out these restaurant prices.


Zimbabwe: Mama Mia's Still Sizzling


Zimbabwe Independent (Harare)

COLUMN
April 28, 2006
Posted to the web April 28, 2006

Dusty Miller


WHO would have thought the day would come when an archetypical Zimbabwean middle-of-the-road restaurant like Mama Mia's, Newlands, would have only two items on the menu under half-a-million dollars --- soup of the day or minestrone at $420 000 --- and most main courses were well over a million?

Well that day has arrived -- some weeks ago -- and (I forecast) things can only get worse when enormous wage increases awarded and backdated to hotel and catering industry staff are fully in force, coupled with massive hikes in rates, rents, water, electricity, phones and fuel.

Many pubs, clubs, restaurants and hotels already face huge, viability-threatening, consumer resistance fuelled largely by a simple lack of disposable income and a general inability to buy meals, drinks and entertainment, when costs thereof are out of all proportion to average salaries. First priorities must be mortgage, rates, water and electricity to maintain a roof over one's head, food on the family table, school fees and fuel.

Be that as it may, Mama Mia's was busy. Not very busy; not extremely busy; not pom-pom packed; not "go in the bar and have a drink sir and we'll try to get you a table in half-an-hour or so". And certainly not: "You didn't book sir? Sorry there's not a hope in hell for tonight; there are already five parties 'wait-listed.'"

All of these scenarios I have seen at Mama Mia's and its immensely popular predecessor, Fat Mama's in The Avenues, over the years. Last week it was busy enough to make many Harare restaurateurs, currently in the grip of a worsening trade slump, fairly envious.

I arrived for a very late supper, having made the error of checking out neighbouring Billy Fudpucker's pub on Thursday (live entertainment) night for the first time in perhaps six months. It's a difficult place to escape convivial company, who don't seem to have school fees heading their priority list.

Piri-piri chicken is perhaps not the best dish to order in an Italian restaurant run by a Greek husband/Afrikaans-speaking wife team. Annette Kalamatas protested it was by no means the house speciality, I should really have their highly praised pasta (from $660 000: Napoletana to $950 000: ravioli), fish, or a meat dish for which the restaurant is rightly famous.

I was tempted. They do excellent steaks -- T-bone or fillet: $1 650 000 and $1 250 000 respectively with sauce an extra $200 000. If 200k for "sauce" sounds pricey, bear in mind these are mushroom (filled with the ultra-expensive fungi), creamy or crispy garlic, pepper, blue-cheese or chocolate-chili (eh?). I feel their steaks don't need expensive dollops of glop, but sauces are popular. Liver alla Veneziana is usually memorably good (especially with mash) as are char-grilled Tuscany pork chops: both $1,2 million.

Mama Mia's chicken is a big half-bird, meaty, served Portuguese piri-piri style, or with lemon and herb sauce, great chips, rice, mashed or baked potato and vegetables or French salad at $1 150 000. It was served fast and proved fine and filling, with just the right amount of tingling heat. But Annette was right: it's not really the restaurant's trademark dish.

Had I been hungrier and earlier, and not so addicted to p-p huku, I might have started with Carpaccio: thinly sliced cured beef fillet with a tangy dressing. At $550 000 it is the same price as most antipastos: mussels in white wine and garlic; deep-fried mushrooms topped with bacon and garlic butter; kebab of marinated fillet steak and Haloumi cheese and beef strips served in a paprika cream sauce are typical and all excellent. Long-serving chef, the talented Tisiana, who still cooks at lunchtimes, is immortalised in Pollo Tisiana: chicken fingers with tartar sauce.

Then a salad (both of these early dishes with really good crusty bread and butter). Italian country, Greek village or Adriatic salad (with apple slices and tangy cheese shavings) or a competently constructed Caprese are $650 000; Capri salad (smoked chicken and citrus with mild chili dressing) $750 000; salad Nicoise (with tuna) was $950 000.

Then a half-portion of Ravioli tradizionali, fretting whether to have it with Bolognaise, Alfredo, Carbonara or blue cheese sauce ($950 000 a full helping) followed by liver alla Venezia with creamy mashed potatoes and al dente vegetables at $1,2 million.

Puddings are around $500 000. I'd be torn between tiramisu, chocolate mousse or fresh fruit salad and ice-cream. A late night coffee would be $50 000 or $70 000 for cappuccino.

I enjoyed the brief company at their tables of a few friends late-night dining, before joining Annette, Nick and son George- -- back in the family business after running de-luxe hotels in Mozambique -- for a totally agreeable supper, a couple of lagers and a chat.

Mama Mia's, Newlands Shopping Centre. Open supper Monday to Saturday. Lunch Monday to Friday. Tel 252276/252278. Booking recommended.

One never can tell...The US$ has weakened on the black market slightly over the past month (down to 200,000:1 a week ago but up a little now), whilst the price of petrol (gas) has fallen 20% on the black market. (like you can buy it anywhere else- unless you are a farmer- then diesel costs US 6 centrs a litre (22c a US gallon). Funny enough all the black farmers simply sell thier allocation on the black market (at US$0.92 per litre) and a few white farmers grow wheat....

The "good" news if you are a Zimbabwean is that you don't have to put up with it all that long. The life expectancy at birth is 39.3 years. If you're really lucky you may be one of the 52 deaths per 1,000 live births.

Some other interesting facts:

More than 37% of the population is age 14 or younger.

A five year-old estimate set the AIDS percentage of the adult population at 24.6%

The official annual inflation rate at the end of 2005 was 585%. The truth is much worse.

The chances the U.S. will help. Not likely. (Oil production - zero; natural gas production - zero)

We have simplified our multiple exchange rate pollicy- so unless you are dealing in gold or tobacco we now have only two rates

1) Official- Z$101,000:US$1
this is the rate you should get if you use your credit card, change money at the bank - also the rate at which both a PH's wages and a safari operators bankings of moneys taken for a hunt are changed at.

2) Black Market - Z$210,000:US$1

A brief

Introduction

to the

Zimbabwe Theory of Quantum Mathematics

Also known as

Bobenomics

The day is very hot and you are passing the Keg and Sable in Borrowdale, so naturally you go in for a nice cold beer. The barman informs you that

One beer
now costs
150 000 Zimbabwe dollars

You can pay with three crisp new $50 000 notes, still damp from the printing press. Or, if you are feeling a bit bloody-minded, and if you can still source the coins ( remember those things : they were still quite common a few years ago ) you can sit back and enjoy a beer while the barman counts out

15 000 000 Zimbabwe one cent coins

But hold it ! We have a problem.

Each Zim one cent coin weighs 3 grams

So this little lot weighs in at

45 000 000 grams
or
45 000 kgs
or
45 Tonnes

After humping 45 tonnes of coins into the pub you are going to need a helluva lot more than one beer to cool down. But don`t panic - we have a plan. Like all brilliant ideas this one relies entirely on its simplicity.

Plan B : We sell the metal and drink the proceeds

There is a small legal question about smelting coin of the realm and exporting the resulting brass ingots. However we'll let the buyer worry about that one.
There doesn't seem to be an international price for brass. Its main ingredient, copper, has recently been selling for an all-time high of US $ 5 200 a tonne on the London Metal Exchange, but we won't be greedy. For a quick sale let's discount it to

U S $ 2 600 a tonne

We are now the proud owners of

U S $ 117 000

But we still can't buy that beer as the Keg is only allowed to accept Zimbabwe currency. We must resist the temptation to change our money on the lucrative but illegal black market ( only the Governor of the Reserve Bank and Cabinet Ministers are allowed to do that ) . So we change at the prevailing interbank mid rate which is

U S $ 1 : Zim $ 99 201,58

Our heap of U S green-backs now miraculously becomes a mountain of

Zim $ 11 606 584 860

For the uninitiated the billions start at the tenth figure, counting from the right.
So if the price of beer has not increased while we were doing this calculation you can now walk back into the Keg and order


77 377 beers !



HAPPY DRINKING

Ganyana:

You, of course, need no education about it but I thought some American viewers might be interested in this single fact. When I went to Zimbabwe in 1993, I stayed at a hotel in Harare for one night (before going in to the bush). The hotel was clearly a nice place (it wasn't in downtown Harare) and I was very courteously treated. ( I remember having my rifle and ammo stored in a hotel safe at the suggestion of the hotel desk clerk) I was a quite experienced business traveler in the US so I expected a fair sized bill the next morning on checking out. The bill was $1200! My heart nearly stopped - until it was explained that the bill was in Zimbabwe dollars -and I believe the rate of exchange was about 6 to 1 then. (BTW, I'm afraid I was one of your "idiots" who paid with a credit card!) It's very sad for this one time traveler to Zimbabwe to read of current woes. I greatly liked the people (black and white alike) and the country. Hope better times come along.

Some Humor to the situation...

I recieve a government disability allowance (got shot and suffered perminat injury in 1992) of
Z$609 per month! (it was a fair chunk of money when it was awarded to me in 1993 - over US$100)

Anyway I still get my pension cheque every month but it costs the government
Z$5000 for the printing of the cheque
Z$5000 Stamp duty on the cheque
Z$4000 for the envelope
Z$18,000 postage

So a total of Z$32,000 to send me my Z$609

A box of matches costs $5000-oo so if I save my pension for a year I can afford a box of matches and a boiled sweet - except by the end of the year a box of matches will probably cost Z$20,000