Shops refusing to accept old currency ahead of Gono’s deadline

By Tererai Karimakwenda
17 August 2006

There is confusion reported around the country as the deadline set by the Reserve Bank for converting old currency approaches. On Monday all old bearers’ cheques will become worthless as stipulated by RBZ governor Gideon Gono in the new monetary policy announced July 31st. But 4 days ahead of the deadline major shops around the country are already refusing to accept old currency and many banks are reported to be doing the same.

In Harare Simon Muchemwa told us that OK and TM supermarkets have posted official notices saying they will no longer honour old money. In Chimanimani our contact Peter says shops are refusing as well, while support unit police are taking money at roadblocks from villagers carrying less than the Z$100,000 maximum allowed.

To add to the confusion the ZimOnline news site reported that counterfeit money has come into circulation in Harare. It said the counterfeiters seem to be targeting street vendors and other informal traders especially in late-night transactions. Banks are reportedly warning their staff to look out for the fake cheques.

Muchemwa said the major supermarket chains set Thursday, August 17th as a deadline for accepting old notes. This defies the August 21st date announced by Gono, who also ordered all banks to remain open for business over the weekend to accommodate the long queues. But Muchemwa says it does not seem like there will be enough time for many people to convert all their money. He says that people were keeping large amounts at home because they needed access to it in case they found items that are in short supply. Now they stand to lose a lot and hope the deadline is extended. But Gono has made it clear there will be no amnesty.

In Chimanimani our contact describes the support unit police actions as robbery. He said they are taking money from individuals who have less than the maximum allowed and accusing them of bringing the money in from across the border in Mozambique. Peter said the police are even drumming up charges of money laundering as an excuse to steal money from local villagers. He explained how they are giving receipts which they say can only be cashed after 2 years. At the banks he reports that people depositing money are told to come back and collect their new notes in 7 days. He said some banks are paying out within 2 days but people are complaining because in many cases they need the money right away to cover their daily needs.

By all accounts Gono’s Operation Sunrise has brought nothing but darkness to the lives of Zimbabweans. It has created a society of roadblocks where people have been abused and where those in charge are taking advantage and gaining a fortune. Like all other government operations from the land reform exercise to the demolitions of Murambatsvina, it is the people who suffer the most while the authorities stand to gain a fortune.