20 July 2010

Legal Money Laundering, Zim Style

"The washing machine cycle takes about 45 minutes – and George Washington comes out much cleaner in the Zimbabwe-style laundering of dirty money.

Low-denomination U.S bank notes change hands until they fall apart here in Africa, and the bills are routinely carried in underwear and shoes through crime-ridden slums.

HARARE, Zimbabwe, by way of The Huffington PostANGUS SHAW | 07/ 6/10 10:19 AM | AP

Some have become almost too smelly to handle, so Zimbabweans have taken to putting their $1 bills through the spin cycle and hanging them up to dry with clothes pins alongside sheets and items of clothing.

It's the best solution – apart from rubber gloves or disinfectant wipes – in a continent where the U.S. dollar has long been the currency of choice and where the lifespan of a dollar far exceeds what the U.S. Federal Reserve intends.

Zimbabwe's coalition government officially declared the U.S. dollar legal tender last year to eradicate world record inflation of billions of percent in the local Zimbabwe dollar as the economy collapsed.

The U.S. Federal Reserve destroys about 7,000 tons of worn-out money every year. It says the average $1 bill circulates in the United States for about 20 months – nowhere near its African life span of many years.

Larger denominations coming in through banks and formal import and export trade are less soiled.

But among Africa's poor, the $1, $2, $5 and $10 bills are the most sought after. Dirty $1 bills can remain in circulation at rural markets, bus parks and beer halls almost indefinitely, or at least until they finally disintegrate.

Still, banks and most businesses in Zimbabwe do not accept torn, Scotch-taped, scorched, defaced, exceptionally dirty or otherwise damaged U.S. notes.

Zimbabweans say the U.S. notes do best with gentle hand-washing in warm water. But at a laundry and dry cleaner in eastern Harare, a machine cycle does little harm either to the cotton-weave type of paper. Locals say chemical "dry cleaning" is not recommended – it fades the color of the famed greenback."

Jill's Comment:

I still have some Zimbabwean currency. It's worth more as a collector's item than any monetary value. I have a $2 note! I keep it in my Bible as a reminder to pray for Zimbabwe and the Zimbabwean people of all ethnicities scattered all around the world due to the difficult conditions within their homeland.

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