125 up for hoarding Zim money
04/08/2006 11:02 - (SA)

Harare - Police in Zimbabwe arrested at least 125 people for hoarding and illegally exporting cash as locals rushed to meet a deadline to exchange their old banknotes, said reports.

It was reported that about 57 people were arrested in eastern Manicaland province as they tried to repatriate old banknotes, known as bearer cheques, into the country from Mozambique.

Those arrested were carrying cash in excess of the old Z$5m ($20) individuals were legally allowed to take out of the country.

The reports said 16 people were arrested in Mashonaland West province as they tried to bring money in from Zambia.

Gono threatens to bring forward deadline

Reserve Bank governor Gideon Gono caused panic on Monday after he set a three-week deadline for people to exchange their old money for a new set of banknotes with three zeros slashed off.

In a bid to outwit hoarders, he said people could hand in only old Z$100m ($400 US) to their banks. The limit for companies was set at Z$5bn ($20 000). Larger sums had to be accounted for, and individuals risked losing their money.

Businessmen and traders were reported to be rushing to buy up assets and groceries before the August 21 deadline, which Gono had threatened to bring forward.

Roadblocks had been set up in Harare and on major highways. The reports said police manning a barricade along the Harare-Mazowe road had found billions of old Zimbabwe dollars stashed in bags inside vehicles.

Those carrying the money claimed they were farmers on their way to buy farming equipment and fertilisers.

Sapa-dpa