Dollar is key to Zimbabwe survival

Last week the reserve bank issued a new Zimbabwean banknote - a $500m bill. Its value changes by the day, but a rough estimate of its worth now is about US $50 (£33).

Its release was enough to see a surge of people flock onto the streets and form huge queues outside the banks. Harare's pavements were gridlocked for most of the day.

But increasingly it is only US dollars that are accepted in Zimbabwe's shops. Petrol stations are among those now turning away people who offer fistfuls of local currency.

Even water bills - for what little clean water there is - have to be paid in hard US cash. And bread is now a dollar commodity in many parts of the country.

'Dollarisation'

There has been a surge in cross-border trade in recent weeks with the lifting of restrictions on US dollar transactions.

Consumer goods, food and cars are being brought across from neighbouring South Africa.

Shoppers at a supermarket in Harare selling goods priced in foreign currency

Supermarkets are now stuffed with food, filling shelves that just a month or so ago were empty.

These supermarkets are for Zimbabwe's tiny dollar elite - the type that drive brand new cars into the car parks as others try to fend off starvation. They only accept US dollar bills in these swanky shops.


Credits: BBC