Cash shortage hits Zimbabwe

• US President has directed more US sanctions against Mugabe's government.
• Daily bank withdrawal limit of US$1 is hardly enough to buy 10 kgs of the staple maize-meal.
• Hyper-inflation has passed the nine million per cent mark.
• Many Zimbabweans have survived the crisis through foreign currency remittances from relatives who fled to Western and neighbouring countries.

On Monday, a $100 billion noted was introduced, but while acknowledging that the withdrawal limits had become unsustainable for businesses and ordinary people, the authorities remained mum on when they would be reviewed.

For a long time, many Zimbabweans have survived the crisis thanks to foreign currency remittances from relatives who fled to Western and neighbouring countries.

Abigail Mvundla, who has been trying to access US$4O sent by her sister in Canada through Western Union a fortnight ago, embodies the suffering many people in her situation have to go through these days.

“They keep telling us that the money has run out and sometimes they tell you that they only have US$100 notes, so they cannot serve those with smaller amounts,” she said.

Economic crisis

At least five million Zimbabweans have left the country since 2000, when the political and economic crisis began and they remit money to sustain relatives back home.

Many now place their hopes on the dialogue between the ruling Zanu PF and the opposition Movement for Democratic Change (MDC).

“We are tired of this suffering,” said Ms Muchaneta Muchenje, a vendor. “MDC and Zanu PF should just get on with the talks because it is clear that our economic problems are linked to their political differences.”

The two parties on Monday signed a memorandum of understanding (MOU) and undertook to conclude talks for a government of national unity within a fortnight.

President Mugabe said he hoped a positive outcome would end the suffering caused by the sanctions.

If an agreement is reached, Zanu PF and the two MDC factions are likely to form a government of national unity that might see Mr Morgan Tsvangirai becoming the new head of government while Mr Mugabe becomes a ceremonial head of state.