I dunno

31 05 2007

I was out at a company near the airport today, installing some software that I have developed and finally managed to sell. They deal entirely in forex and as such quite frequently have a problem sourcing Zimbabwe dollars so one way to get around it is to sell fuel for which they have paid hard currency. Today they were selling diesel for $64000 a litre. Last week Wednesday I bought diesel from another source for $36000, that’s nearly 100% devaluation in a week!

It is well known that the government parastatal companies (electricity etc.) occasionally have to source real money, so they go along to the Reserve Bank, get as much cash as they need and go onto the “street” and buy. This of course drives the rate up as it has done over the last week. They have something of an unfair advantage as the rest of us can only withdraw $3 million from a corporate account at any one time. This limit was imposed by the powers that be ostensibly to limit cash on the street and to keep the exchange rate down. It also has the convenient side effect of giving those that do have access to unlimited cash (easily printed) something of a captive market.

In the last week that the exchange rate has run I have been polishing up the software that I was installing and not paying too much attention to the rate. It has been expensive as the equivalent of US$1000 that I have in the corporate account has doubled in number but remained the same in real value! I should have been buying, anything! This begs the question about what to do about going on leave – can I afford to be away for even a short time?

I have told the company which is buying the software that I want US$1000 equivalent (in Zim dollars) for it in an attempt to get something of value for all the hard work. However, if they pay me by cheque it will take 5 days to clear through the bank and then I will only be able to get 3 million in cash a day. By the time I can start to use it, it may well have halved in value. There is also a limit on cheques of 50 million (though you can write two or more of a lesser amount) but most companies don’t like accepting cheques and one often has to wait for them to clear before you are allowed to collect the goods. About the only option left is to make a direct transfer which has no limit. But one does want to buy something that has resale value and anyway, what can you buy for US$1000 equivalent? I dunno.


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4 responses

31 05 2007
Gillian

Is it just me, or was the “I Dunno” blog exhausting to read?

1 06 2007
Your Guide To Cash And Happiness » Blog Archive » Currency Exchange of 2007-05-31

[…] I dunnoThis limit was imposed by the powers that be ostensibly to limit cash on the street and to keep the exchange rate down. It also has the convenient side effect of giving those that do have access to unlimited cash (easily printed) … […]

1 06 2007
goneXC

Got it one Gillian. It’s exhausting to live too!

2 06 2007
3rb0

thank u for this blog http://www.3rb0.com

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