We noted in June that Zimbabwe’s cash crisis continued unabated.
Those awaiting cash transfers at a bank may wait a month to be cleared and, even then, the transfer may be refused.
The Standard, Zimbabwe’s leading Sunday newspaper, ran an article at the time entitled, “Black market thrives, as banks run dry.”
Some highlights from that article:
HARARE’S Road Port has become the unofficial bank of last resort, never short of cash, no queues and a multicurrency platform. The money market at this busy bus terminus now plays the role that the formal banking sector has failed. It is effectively making a mockery of the Reserve Bank of Zimbabwe (RBZ).
This points to the nature of black markets. They thrive based upon fulfilling an existing need, not upon government control. They, therefore, replace whatever services the official market fails to provide.
“Top government officials, supermarket owners and service stations were behind the thriving black market, which is never short of cash.”
And now it appears many Zimbabweans have found an alternate way to store/transfer wealth away from Mugabe’s prying (and confiscatory) eyes.
In September we noted the hyperbitcoinization occurring in Zimbabwe. In October, Zimbabwe demand started to impact the global price of the cryptocurrency, and two weeks ago we noted the doubling of the price of Bitcoin in Zimbabwe as uncertainty about the nation’s stability sent citizens into a decentralized currency that was out of Mugabe’s reach.
image courtesy of CoinTelegraph
Now, after the military coup confirms the average joe’s fears, Bitcoin is trading at over $13,000 on Zimbabwe exchange Golix – a premium of over 80% over the USD exchange price as demand surged.
And the order book is full…
Bloomberg reports that demand for bitcoin in Zimbabwe has surged amid a shortage of hard currency.
