Connect with us

Hi, what are you looking for?

From US$ to gold
From US$ to gold
FANTASY: A cartoon on the Zim inflation situation

News

From US$ to gold

  • We always make history as a country, albeit usually for the wrong reasons.

On Monday, Central Bank Governor, John Mangudya announced a host of measures to curb the country’s economic crisis. These included the increase of interest rates from an already high 80 to a staggering 200 percent, making it the highest in the world. This instantly made news the world over, I guess because of the fact that no any other country has such ridiculous rates, even those at war.

And knowing how things work in Zimbabwe, instead of these measures yielding positive results, things will actually turn for the worst.

A few weeks back, the same central bank suspended the borrowing facility, meaning that banks and individuals could no longer borrow money from financial institutions.

Within a few days, prices shot up and that decision was reversed. Sadly prices of commodities never came down.

On closer inspection, one could realistically say that same policy has come back but in a different form as surely no can afford to borrow money with such high interest rates!

Time will tell if things will change for the better and if inflation, which is currently at 191 percent will stabilize and even come down.

Advertisement. Scroll to continue reading.

And by the way, fuel now costs an average of US$1.95 (about P23.40) a litre and most of us are really feeling the pinch – makes you appreciate living in Botswana dear reader, even though your fuel prices are rising, they have a way to go to reach ours!

We stay 40kms from Bulawayo and normally drive to town as it is convenient but this week we had to forgo convenience and use public transport which is a lot cheaper. With the way things are going, our vehicle will be parked for a long time as the going gets tougher.

Someone wrote on Twitter recently that at the rate at which things keep changing for the worse in our country, most of us will survive on anti-depressants; I couldn’t agree with them more.

Of course some people can argue that the whole world is struggling for one reason or the other but for us, it has been struggle after struggle with very little to smile about.

In other economic related news, the government says it will soon introduce gold coins as store of value. So instead of putting those hard earned US dollars under the pillow as people no longer have confidence in the banking system, the government is saying people should instead bring the cash to the bank and be given the gold coins which somehow appreciate in value.

Of course that only applies to the rich and not the majority of us who live from hand to mouth. It is hope this will increase circulation of the much needed American dollars.

Advertisement. Scroll to continue reading.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

News

In an urgent application filed by Member of Parliament (MP) for Lobatse, Thapelo Matsheka’s, wife, Veronica Matsheka at the Lobatse high Court yesterday, the...

News

Help us find Dr. Rowland A purported Neuro Surgeon Specialist, Dr. Thabo Rowland, is a wanted man. At least 25 people are looking for...

News

WATCH: In case you missed yesterday’s High Court judgement when Justice Gaolapelwe Ketlogetswe ruled against the detention of Lobatse Member of Parliament (MP) Thapelo...

News

WATCH: The Court of Appeal has set aside nine strokes of the cane that were to be administered on petty criminal, Temogo Radidiba (white...

Politics

Former Minister of Defence and Botswana Democratic (BDP) Deputy Secretary General, Shaw Kgathi, has thrown his name in the hat for the Secretary General...

News

Passenger relives horror A3 crash that killed 16. “Piercing screams of dying people and those in pain were the only sounds one could hear...

Business

WATCH: A research by the Faculty of Engineering at University of Botswana has produced a blended biodiesel that is said to be much cheaper...

Latest News

Supermarket launches grocery coupon scheme Payless Supermarket has launched a grocery coupon scheme which will allow customers to buy food commodities on credit and...

News

Father strangles son then commits suicide A Tutume family have been ripped apart by a suspected murder-suicide which left a little boy dead and...

News

Kopong ‘hitman’ locked up for a decade An alleged hitman who was hired to kill a teacher in Kopong has been locked up for...

Politics

BDP MP reports councillor for threat to kill Botswana Democratic Party (BDP) Letlhakeng Sub-District Council Chairperson also Councillor for Mantshwabisi, Meshack Tshenyego, has appeared...

News

Cricket lovers were a happy lot on Tuesday following Zimbabwe’s victory. It was actually breaking news and I immediately thought of my charming Sub...

Sports

Makwala’s national team retirement leaves sour taste Having provided the nation with countless golden moments in the last 15 years, one of the country’s...

Advertisement