Zim banks struggling to provide cash

Zim banks struggling to provide cash – NewZimbabwe 02/03/2016

SOME Zimbabwean banks are struggling to provide cash and are limiting amounts to individuals and companies, which the central bank blamed on the financial institutions underestimating demand and failing to improve cash distribution to branches.

Since Monday, customers from several banks have struggled to access money from automatic teller machines while banking halls daily withdrawals have been limited to as low as $200.

At three different banks in Harare on Wednesday, a Reuters witness saw customers being told to wait until there was enough money from deposits before being served. Several bank machines were also not dispensing cash.

“It is not a problem of the availability (of cash). Its more about distribution. Banks underestimated the demand for cash,” Reserve Bank of Zimbabwe governor John Mangudya told a privately-owned newspaper.

Mangudya was unavailable for further comment.

Last month, Mangudya capped daily withdrawals at $10,000, saying amounts above that figure required central bank approval. He also said individuals and companies had illegally exported $1.8 billion in 2015.

Zimbabwe does not have its own currency, which it dumped in favour of the U.S. dollar in 2009 after hyper-inflation reached 500 billion percent, at the height of an economic crisis.

Local banks have to import bank notes, mostly from the United States and South Africa because Zimbabweans mainly use the U.S. dollar and rand currency. The sterling pound, euro and Chinese yuan are also legal tender.

COMMENTS

WORDPRESS: 4
  • comment-avatar
    Mandevu 6 years ago

    Mmmhh something going on here

  • comment-avatar
    Mazano Rewayi 6 years ago

    The authorities seem determined to bring back the Zimdollar via the back door. Soon the withdrawal instruction shall be “10USD and 1000 Bond coins”! If only these guys could use just 10% of their thinking capacity for real national development.

  • comment-avatar
    True Zimbabwean in Zimbabwe 6 years ago

    Please do not confuse issues and doing so confuse others.

    Authorities everywhere in pursuit of AML/CFT may set controls and limits over the amount, timing, process, etc. of actual hard cash that may be withdrawn, subject to national and other contextual risks. The $10,000.00 CASH cap is not unique to Zimbabwe. A person/entity is still allowed to transact well above that limit as long as it is not in hard cash.

    • comment-avatar
      spiralx 6 years ago

      It may not be unique to Zimbabwe, but everyone knows why it’s in place: 35 years of ZANU corruption and continuing incompetence.