Cash crisis in Zim

2003-07-28 19:27

Harare - Riot police were manning bank queues in the Zimbabwean capital Harare on Monday as hundreds of angry clients tried to withdraw money amid a growing cash shortage in the troubled country.

Zimbabwe's cash shortages have reached crisis proportions and tempers are rising as people try to withdraw money to pay end-of-month bills.

Riot police were reported to have fired teargas outside several banks at the end of last week.

At least two banks had windows smashed by angry clients on Friday.

Many banks are now limiting cash withdrawals to Z$5 000 - less than US$2 at the parallel market rate and only enough to buy five loaves of bread.

As inflation tops 364% and parallel rates for foreign currency soar, Zimbabwe's cash crisis is now firmly in its fourth month and economists warn it could get worse.

"If this is not dealt with quickly, it will have grave repercussions," warned Eddie Cross, an official with the opposition Movement for Democratic Change (MDC).

"This is an emergency of the highest order," he said. - Sapa-AFP

- SAPA