Scramble for US dollars

Less than two weeks after President Robert Mugabe's government unexpectedly introduced $5 ‘bond notes’, a state-controlled newspaper says notes in denominations of $10 and $20 are likely to be introduced too. Legalbrief reports that the bond notes were first introduced in denominations of $1 and $2 at the end of November, ostensibly to ease a cash shortage. So desperate are shops for hard currency that they are offering discounts of as much as 50% to customers who hand over US dollars. Some petrol stations now have separate pumps where the price of fuel is lower for customers who pay with hard-currency cash instead of using a debit card. The Economist reports that shops in Harare have resorted to indicating two or three different prices for the same item – a US dollar cash price, a bond-note price and a third price if one pays by card. Black marketeers have been quick to help out. Some are offering to convert bank balances into real dollars at premiums ranging from 5% to 30%. The big supermarket chains are not allowed to offer cash discounts or discriminate against customers who use bond notes or electronic cards. Instead they have simply raised their prices.