#mkomanawamamoyo

Two weeks ago President ED Mnangagwa introduced new ‘economic stabilization measures’. The Zimbabwe dollar lost almost 50% of its value overnight.

5 May 2022 RBZ rate 159; interbank rate 310; street rate 360; inflation 207%
9 May 2022 RBZ rate 275; interbank rate 310; street rate 450; inflation 207%
13 May 2022 RBZ rate 278; interbank rate 310; street rate 450; inflation 256%
20 May 2020 RBZ rate 291; interbank rate 340; street rate 450; inflation 256%

The ‘economic stabilization’ measures did the exact opposite of stabilizing anything and included:
1. Banning banks from giving loans. This immediately left companies stopping payment of dividends, agro-processing companies writing to suppliers saying they were suspending advance payments and even abattoirs telling farmers to stop supplying livestock.
2. The retention of a 2% withdrawal tax on Zimbabwe dollars
3. A new 4% tax to send USD locally
4. A 2% withdrawal tax for nostro accounts (local accounts which contain foreign currency)
5. 40% capital gains tax on shares sold before 9 months

On Friday government set new statutory wages including those for a child minder or disabled/aged minder – Z$11,025 per month (that’s US$26.20 a month at the going rate today) or Z$55.68 per hour (that’s 13 US cents an hour at the going rate).