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elizabearTallying obsolete coins causes chaos in Zimbabwe [AP]
Zimbabweans dug out coins squirreled away years ago in jars and cupboards, and headed for the shops, where lines built up as overburdened tellers more accustomed to counting mounds of hyper-inflated dollar notes instead were juggling silver.
The central bank, overwhelmed by stratospheric inflation, last week cut 10 zeros from the currency and reintroduced coins made obsolete in 2002 when they became worthless. A $1 coin now is worth 10 billion of the old dollars. On Friday, about 20 $1 coins - or 200 billion Zimbabwe dollars - could buy a loaf of bread, if it could be found in a downtown supermarket. That's about $5 at the official rate and $2 at the black market rate that better reflects the value of the currency.
"It's a bonus for anyone like me who didn't know what to do with coins and didn't throw them away," said businessman Frank Takavara, who carried a cookie jar full of coins that bought him a small sachet of powdered milk.
New $10 and $20 notes were issued by banks Friday, but most purchasers still used coins, old notes, or checks. The old currency remains effective until December, being used alongside new bills in the "revalued" currency rate introduced Friday. The biggest new bill is $500, equivalent to 5 trillion in the old denominations. Two weeks ago, the bank had introduced a $100 billion dollar note.
In setting prices on its menu, a downtown cafe mistakenly slashed nine zeros from its prices instead of the required 10. Until December, prices must be quoted in both new and old dollars, according to a central bank directive. "Everyone is totally confused. Maybe things will settle down in a few days. It's farcical at the moment," said the cafe manager, who asked not to be identified for fear of repercussions.
Embattled President Robert Mugabe blamed profiteers and Western sanctions for the economic chaos in the southern African nation, and this week warned that if businesses tried to cash in on the mess, he would impose a state of emergency. There were fears he could use emergency laws to punish rivals should power-sharing talks with the opposition not resolve in his favor. Mugabe has ruled Zimbabwe since a guerrilla war forced an end to white minority rule in 1980, in recent years even overcoming opposition within his party.
Zimbabwe's woes began when Mugabe nearly 10 years ago sent supporters to invade white-owned commercial farms that drove the economy violently, saying he was reclaiming the land for poor, black peasants. Instead, he gave the farms to his Cabinet minister, generals, and other cronies. Most were left untended and today Zimbabwe, which once exported food, suffers chronic shortages of everything from food and medication to fuel and electricity.
Zimbabweans dug out coins squirreled away years ago in jars and cupboards, and headed for the shops, where lines built up as overburdened tellers more accustomed to counting mounds of hyper-inflated dollar notes instead were juggling silver.
The central bank, overwhelmed by stratospheric inflation, last week cut 10 zeros from the currency and reintroduced coins made obsolete in 2002 when they became worthless. A $1 coin now is worth 10 billion of the old dollars. On Friday, about 20 $1 coins - or 200 billion Zimbabwe dollars - could buy a loaf of bread, if it could be found in a downtown supermarket. That's about $5 at the official rate and $2 at the black market rate that better reflects the value of the currency.
"It's a bonus for anyone like me who didn't know what to do with coins and didn't throw them away," said businessman Frank Takavara, who carried a cookie jar full of coins that bought him a small sachet of powdered milk.
New $10 and $20 notes were issued by banks Friday, but most purchasers still used coins, old notes, or checks. The old currency remains effective until December, being used alongside new bills in the "revalued" currency rate introduced Friday. The biggest new bill is $500, equivalent to 5 trillion in the old denominations. Two weeks ago, the bank had introduced a $100 billion dollar note.
In setting prices on its menu, a downtown cafe mistakenly slashed nine zeros from its prices instead of the required 10. Until December, prices must be quoted in both new and old dollars, according to a central bank directive. "Everyone is totally confused. Maybe things will settle down in a few days. It's farcical at the moment," said the cafe manager, who asked not to be identified for fear of repercussions.
Embattled President Robert Mugabe blamed profiteers and Western sanctions for the economic chaos in the southern African nation, and this week warned that if businesses tried to cash in on the mess, he would impose a state of emergency. There were fears he could use emergency laws to punish rivals should power-sharing talks with the opposition not resolve in his favor. Mugabe has ruled Zimbabwe since a guerrilla war forced an end to white minority rule in 1980, in recent years even overcoming opposition within his party.
Zimbabwe's woes began when Mugabe nearly 10 years ago sent supporters to invade white-owned commercial farms that drove the economy violently, saying he was reclaiming the land for poor, black peasants. Instead, he gave the farms to his Cabinet minister, generals, and other cronies. Most were left untended and today Zimbabwe, which once exported food, suffers chronic shortages of everything from food and medication to fuel and electricity.
