A Penny for Your Thoughts? … Not in Zim

In coming to a country such as Zimbabwe I obviously expected there to be aspects of everyday life that I would have to get used to. It would have been foolish of me to expect otherwise. For example, I came prepared to experience Zimbabwe’s notoriously unreliable power grid and, predictably, I have already had to deal with a few random and at times lengthy blackouts. The same can be said for the lack of hot water and often terrifyingly aggressive traffic flow. All of these are deviations from my habitual life in Canada but did not manage to catch me by surprise.

What has caught me by surprise – and I fully realize how inconsequential this will sound compared to power cuts and death-defying traffic – has been the country’s complete lack of change. By change I don’t mean something’s inevitable evolution over time, but rather the jingle in your pocket, flip for heads or tails, kind. The whole country is absolutely devoid of coins.

I realized it when I first went to the grocery store. My uncle bought some stuff, I can’t remember what or for how much, but it came to a price that required him to receive change, we’ll say it was $24.35. He handed  $25 over to the cashier and I stood there, waiting for him to receive his change. It never came. Instead, a strange little back and forth between him and the cashier took place.

“If I get this chocolate does that make up the difference?” he asked.

“No but if you get this chocolate too and a bag it will bring you close.”

“Ok, lets do that.”

It wasn’t until my uncle saw my perplexed look that he explained what had just happened.

Zimbabwe no longer has its own currency, that much I knew. The Zim dollar was abandoned in 2009 after one of the most epic and preposterous currency collapses in history. After disastrous land reform took place in 2000 Zimbabwe’s economy collapsed. Agricultural output plummeted and the country began resorting to importing food. Combined with serious security issues the whole economy crumbled. The much dreaded hyper inflation set in and in the summer of 2008 inflation reached an absurd 231,000,000%. The Zim dollar devalued so rapidly that the price of goods would change multiple times a day with small items such as a loaf of bread or a lollipop comically costing billions of dollars (equivalent to only a few bucks). The Reserve Bank of Zimbabwe had to resort to printing 100 trillion dollar bills, of which one sits framed in my parents restaurant back home in Canada. The situation was bleak to say the least and many Zimbabweans did not make it through those dark days.

A One Hundred Trillion Zim dollar bill that was actually put into circulation. At the height of the crisis it was worth less than $30.

In 2009, the government decided to abandon the Zim dollar completely and the use of foreign currencies for transactions was legalised. There was a transition to the American dollar which is the most common currency in use. This transition, however, was not officially brokered with the U.S so, unlike other countries who legally make the switch, Zimbabwe didn’t receive it’s allocation of U.S currency from the Federal Reserve. The only American money it has in circulation then is what it gets paid from the few exports it makes and from foreigners, like myself, who come with fresh currency. What this means is the country has only a very small amount of bills that are actually in circulation and absolutely no coins. This has led to tattered bills that would normally be taken out of circulation to remain and the only coins to be South African Rands. Even those are rare. Some of the dollar bills passed around have become so faded and so dirty you can almost not even tell what denomination it is. The paper has become so thin and worn it feels like nothing between your fingers.

Crumpled and worn bills have been kept in circulation out of necessity. Crisp, new bills are a rare find.

And so, with so little money in circulation, scenes like the one at the grocery store, where change is unavailable, have become everyday occurrences. Shoppers are forced to make up the difference of purchases with small items or forfeit the change altogether, something which an impoverished people is reluctant to do.

It’s strange what can take you aback sometimes. Coming from Canada, who would ever guess this could be the case. We take for granted cash registeres filled with money and convenient and exact transactions. What would create outrage at a store back home is simply a way of life here.

Until next time!

Advertisements

2 thoughts on “A Penny for Your Thoughts? … Not in Zim

  1. I came back to Canada with a decent amount of “sweeties” I had been given instead of the jingle of loose change that should have been weighing down my purse. I had wanted to give them to Sarah but she declined as she already had her own stash. Can you believe a kid not wanting anymore sweeties, or candies as we call them here in Canada, because she has had enough. I found that priceless.

  2. I took my family back in 2005. The real exchange rate was insane, but the government was still pretending their Zimbabwe money was real and they had some artificial exchange rate around $100K per dollar…, but the best part was they still had all their coins and their largest denomination was a 1000$Zim bill (they did not want to admit they had an inflation problem even though breakfast cost me nearly a million dollars.) We did our currency exchange on the black market (much higher rate) when we could, but on two occasions I had a lot of fun at their expense by going into a Zim Bank and exchanging a single dollar for as wide a variety of coins and bills as I could get. With each of my dollars, I got a full collection and many duplicates. The clerks were most frustrated about it. I am sure the metal weight alone was worth many times my dollar… That’s what they get for artificially pegging the currency and maintaining the small coins and bills. ;^)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s