Zimbabwe’s currency reforms a ploy to benefit political elites

October 20, 2008: The effects of escalating political and economic instability in Zimbabwe are rippling through all parts of society. Coverage of these effects is plentiful, as is criticism. In all this, there is a familiar theme at play. The idea of cashing-in during times of political and economic crisis is a well-rehearsed practise of shady but astute big business and property agents. The food industry in Southern Africa has no qualms in this game. Recent changes in the Zimbabwean economy, amongst other things, have seen the sanctioning of certain retailers to trade in foreign currency. Electronic payment mechanisms have been suspended and there are limits on the amount of hard currency an ordinary citizen can access. In certain supermarkets, only particular goods are available to buy in forex, and others are to be sold in local currency. Needless to say, these remain on the shelves.
Food imports Some people prefer to buy this way than to travel to South Africa to buy food. But others say that the imported food that can be sold in forex are only really supporting the South African export economy. South African supermarkets find it easier to stock shelves under these new forex allowance because they have access to protected financial stores and thus have less risk. Their apolitical position makes them the perfect vessel for economic transactions that take advantage of crisis.
Read full article: http://blog.theblogs.co.za/2008/10/zimbabwe%e2%80%99s-currency-reforms-a-ploy-to-benefit-political-elites/