Sunday, September 28, 2008

Bank withdrawal limits

In the essay I wrote for Spencer's class I mainly focused on the dropping economy of Zimbabwe. When I researched it I learned a lot about how bad the economy was, however it is hard to actually figure out what it means. My confusion came from how expensive things were in Zimbabwe. Sure there currency is not worth much compared to other currencies, but are things lower priced to compensate for that? An example is that pesos are worth less than U.S. Dollars, but then the price is lowered. I knew that 30,000 Zimbabwean dollars equaled roughly one U.S. dollar in 2007, but then what was actually required to buy the required things to survival? I found a website that helped me connect all the questions, and the results were astonishing. The site said that 1,000 Zimbabwean dollars was barely enough to cover the cost of transportation to and from work. 1,000 dollars to get to work, we complain about gas here. The banks just changed the withdrawal limit from 1,000 dollars per day to 20,000 dollars per day. This means that before this change they had almost no money left to buy food and other necessities. All of this info I found shocking, and if you dont believe me check it out for yourself at: http://www.voanews.com/english/Africa/Zimbabwe/2008-09-26-voa44.cfm

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