The inflation rate in Zimbabwe is now said to be 1,000,000%. What does this mean for a typical person? A diary kept by “Esther” and published by BBC News gives some insights.
Visa debit machines were designed to process transactions with a maximum value of Z$990,000,000. At the time, no-one would have anticipated the need for a transaction ever to exceed that amount. However, one billion Zimbabwean dollars are now worth less than two Australian dollars. So the purchase of a heater costing Z$33bn (approx AU$58) would require 34 separate visa card transactions. The maximum amount which can be withdrawn from a bank on any day is Z$5bn (approx AU$10), so it is necessary to conduct multiple credit card transactions when buying most things.
Meanwhile, Zimbabwe’s army chief-of-staff General Chedondo has told soldiers that they must leave the military if they do not vote for Robert Mugabe at the presidential run-off poll. He said, “Soldiers are not apolitical; only mercenaries are apolitical. We should therefore stand behind our commander-in-chief.” Zimbabwe’s generals have previously stated that they will not support Morgan Tsvangirai, the opposition candidate, if he is elected. The run-off election is scheduled for 27 June.