Banks limit withdrawals amid reports of cash shortages

via Banks limit withdrawals amid reports of cash shortages | SW Radio Africa by Nomalanga Moyo

Zimbabwe stock exchange suffered big losses as the election results were announced

Cash shortages are said to be worsening in Harare, with reports that banks are now planning a series of measures to limit withdrawals.

An investigation by SW Radio Africa indicated that some companies were even failing to pay workers their wages as they cannot withdraw large sums of money from their corporate accounts.

According to Harare-based correspondent Simon Muchemwa, indigenous banks have been the hardest hit.

“Since the elections banks have experienced sustained withdrawals as individuals and companies respond to the uncertainty that accompanies a ZANU PF win.

“A month after the election result there is still no Cabinet in place and such a situation doesn’t inspire any confidence at all so people are taking out their money and there are few deposits being made,” Muchemwa said.

In response, some banks are now limiting withdrawals to amounts ranging from $100 to $500 per day.

“Before the election, companies could withdraw as much as $20,000, but that is no longer the case, to the extent that some have been struggling to pay salaries.

“A director at one property development firm indicated that since July they have not paid wages in full because they cannot access the money from their bank.

“In some instances banks are asking some depositors to bring police clearance if they want to withdraw large sums, as a way of buying time because some of them fear going under if the panic withdrawals persist.

“And this makes it very difficult for people with children of school-going age to pay school fees, rent etc, and some parents I spoke to whose children attend boarding schools, said they have not managed to pay tuition fees,” said Muchemwa.

Following the announcement of the July 31st poll outcome, the Zimbabwe Stock Exchange (ZSE), suffered big losses amid reports that the ZANU PF government was going to re-introduce the Zimdollar.

Despite Reserve bank Governor Gideon Gono going around the country to try and reassure investors and depositors that this was not the case, it appears there is still skepticism about what ZANU PF will do next.

Muchemwa said: “ZANU PF continues to threaten foreign-owned firms and they have not really ruled out bringing back the much-hated Zimdollar and so as long as there is no clear policy on those issues, this has the potential of degenerating into another cash crisis of the 2003-2005 levels.”

 

COMMENTS

WORDPRESS: 15
  • comment-avatar
    Tjingababili 7 years ago

    WHAT YOU SEE IS WHAT YOU GET! MOODLA NYUNYU!

  • comment-avatar

    Tata choir

  • comment-avatar
    Mugabe forever 7 years ago

    fake story…. I own a company in zimbabwe and i withdrew $10 0000 just last week without any problems

    • comment-avatar
      Mugabe forever 7 years ago

      i meant $10 000

      • comment-avatar

        Where there is smoke there is fire, last week you withdrew 10,000, this week it should be easy enough to verify.

      • comment-avatar

        How many zeros does your ten thousand have? thats why you call yourself ‘mugabe forever’ coz you’re so over-carried with the zimdollars coming!Dofo remunhu indigenous, dzoka kuchikoro.

  • comment-avatar

    But such rumours are not good at all.Can someone explain the shortage of bread in some parts of Bulawayo? I say parts because I do not know whether this shortage I witness is only where I stay but the last 2 days we had no bread in shops.

  • comment-avatar
    manford 7 years ago

    @ mugabe foreever , you are the company owner really? what company?
    are you enjoying your zimbabwe? you get everything you want in that country? i think you dont visit S.A to do shopping like ordinary people do, if not, shortly you will be coming down south coz your country will be as good as nothing without food, you mampara

  • comment-avatar

    just ringing alarm bells for nothing. things are as normal as always

  • comment-avatar
    Joel Nyamamhini 7 years ago

    Mugabe Forever last week is definitely not this week. If you withdrew your $10 000 last week what makes you think the situation cannot change this week – especially with our new govt which is absolutely clueless.

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    eztechplc 7 years ago

    I blame RBZ and banks for lack of innovation. In this day and age the requirements for cash must be minimal. Schools fees can be interbank, wages n salaries interbank, shopping interbank etc. There won’t be any need for real money given what plastic money can do. 70% plastic money alleviate liquidity issues. Just that it need the reserve bank of SA, US and Bots as ours does not want responsibility until they have their own gold backed currency. All along how was Z$ backed? It was backed by land?

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    todii zvazvo 7 years ago

    Where there is uncertanity, this happens, its rather to be safe than sorry, withdraw your money whilst u can, dont forget 2008 era,
    Mokanganwa zuro nehope,Nikuv can not rig the economy!!

  • comment-avatar

    …is this the Zimbabwe we voted for gentlemen…or the one iri MuManifesto…

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    Timothy 7 years ago

    This is quite true , i had a tough time ,Metbank in some of its branches was giving a maximum of $200 for companies and their main branch $500.

  • comment-avatar
    Charles Chindove 7 years ago

    Where does ECOCASH plsay it’s role in this part of Cash shortage.I thought they can fill this void. It’s high time the Bank considers the extensive use of Plastic money.