RBZ imports $15m worth of cash

THE Reserve Bank of Zimbabwe (RBZ) has imported $15 million worth of cash, which will be in the banking system today as it moves to halt the cash shortages plaguing the banking sector.

Source: RBZ imports $15m worth of cash – NewsDay Zimbabwe May 9, 2016

This came as depositors have been struggling to withdraw money from banks amid reports that the strengthening of the United States dollar against major currencies has spawned cash externalisation since the dollar was used as a reserve currency.

“We are bringing in $15 million worth of cash,” RBZ governor John Mangudya told newspaper editors on Friday.
The demand for cash has seen depositors spending more time in bank queues, with some banks placing caps on withdrawals.

Last week, Mangudya introduced a raft of measures that include placing a cap of $1 000 on withdrawals a day and advocating the use of plastic money and other currencies in the multicurrency basket to reduce pressure on the demand for the dollar.

Statistics from RBZ showed the currency utilisation levels of the US$ had increased to the current 95% from 49% in 2009. This has increased the demand for the US$ as other currencies in the basket were elbowed out.

The currency utilisation levels for the rand declined to the current 5% from 49% in 2009. Mangudya said there was need to restore the fundamental principles of the multicurrency system through increasing the availability and usage of other currencies within the multicurrency basket.

The multicurrency regime was introduced in 2009 to stem hyperinflation, which had spiralled to over 500 million percent making the local currency worthless. The Zimbabwean dollar was officially retired last year. At inception, the multicurrency basket had the United States dollar, South African rand, Botswana pula, British pound and the euro. Four other currencies — the Indian rupee, Australian dollar, Japanese Yen and Chinese yuan — were added to the basket in 2009. Despite an avalanche of currencies in the basket, cash shortages have hamstrung the market.

COMMENTS

WORDPRESS: 5
  • comment-avatar
    nelson moyo 5 years ago

    Very good – now go and import another USD 30 million – you are going to need it – a run on banks like you have never seen is about to unfold in ZW – pay attention – you dont see it happen often in ones life !

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    ntaba 5 years ago

    I strongly recommend against any people of Zimbabwe to keep any money at all in the banks. When Zanu and the RBZ printed the ama-trillions – the stole all the savings. At the same time Zanu attempted to starve the people – and still are – by destroying the food security. All US$ must be removed from the banks for personal safe keeping. The RBZ has shown us how they respect people’s svaings in the past. They are creatures of habit. Zanu and the RBZ cannot be trusted with the banking system, the judiciary, agriculture, the economy, the political system, elections or any form of civil government. Looting like they did in the DRC and genocide in Matabeleland are their real strengths. The time has come to render them obsolete by doing away with the formal banking system completely. The time is now. A run on the banks is essential.

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    harper 5 years ago

    We brought all our currency in brand new one and five US dollar bills. Some places were reluctant to accept them, scared that such new notes were counterfeit.

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    Jono Austin 5 years ago

    Inflation had spiralled to 500 million percent. I can clearly remember that the Government blamed shopkeepers for that. Can the Government explain why inflation is low now? Are shopkeepers being nice? Or is it because Government no longer controls the printing presses. What do the people think? No Zanoid to comment because they would jump off a cliff if Mugabe told them to!

  • comment-avatar

    Bloody fools. I wonder why they do not want the country to run correctly. There is enough for everyone damn it