Zim banks running out of cash

via Bulawayo24 NEWS | Zim banks running out of cash by Staff reporter 13 November 2013

Zimbabwean banks have been hit by a liquidity crisis following the July 31 polls resulting in the public failing to withdraw money in various financial institutions.

Several Harare residents told VOA Studio 7 they are failing to access their cash from banks owing to the shortage of money that the banks are reportedly experiencing.

One such resident is Mathias Masunda, who said he went to his local Metropolitan Bank on Wednesday intending to withdraw some money, but only managed to get half the intended amount.

Other banks that are reportedly failing to disburse cash on demand include the Commercial Bank of Zimbabwe and Agribank.

“Authorities should tell us what is really happening because we do not know why the cash is not readily available at the banks,” said Masunda.

Another Harare resident, Byron Mutingwende, said the cash problems are being worsened by citizens who are not depositing money into financial institutions due to the uncertainty that he claimed was created by the disputed July 31 polls that saw President Robert Mugabe romp to a landslide win against former Prime Minister Morgan Tsvangirai of the Movement for Democratic Change.

Masunda, however, said there is no cash circulation in both the formal and informal market resulting in most people failing to deposit anything in the banks.

“We just do not have the money. We can’t even feed our families let alone having some money to deposit in banks,” he said.

Mutingwende said the delay by Finance Minister Patrick Chinamasa to announce the 2014 national budget has fuelled the problem as economic players are not sure how to invest their money.

Chinamasa said he will not be announcing the budget anytime soon to allow for wider consultations.

He urged authorities to review interest rates so that the public can have confidence in the banking sector.

Meanwhile, Zimbabwe Bankers Association president, George Guvamatanga, said his association is engaged in talks with the central bank with a view to revising the rates.

In September this year, most banks – locally-owned and foreign – reported a decrease in interest income dragged by a Memorandum of Understanding (MOU) signed in February.

Under the MOU, banks would, with effect from last February, charge up to 0,5% of the cash withdrawal amount subject to a minimum charge of $2,50 while ledger fees, maintenance and service fees will cost up to $4 per account.

 

COMMENTS

WORDPRESS: 14
  • comment-avatar
    bam bam 8 years ago

    take your money from the banks now before it is all gone and you are queing around the block all day to withdraw $2 show the banks that they cannot bully you like they did before when they treated every zimbabwean terribly, come christmas time there is going to be no money inside these banks, then whatie!

  • comment-avatar

    thats why Bob keeps his in Switzerland

  • comment-avatar
    Ha'penny 8 years ago

    Can the Jurassic Robin Hood apply its trade on the economy?

  • comment-avatar

    Clever bob wl deceive the mass until he gets to his grave .

  • comment-avatar
    OSCAR 8 years ago

    Anybody who has any sense will get their money out of the bank as soon as possible. The banks are running dry and soon you will not be able to get your savings. On top of this there is little doubt that the Govt will bring back the Zim$. They cannot pay the wage bill. They have no money. You will wake up in the morning with NO US$ only Zim$ in your account. Then they will start printing just so they can pay wages. We all know what happened last time. We must get our money whilst we still can!

  • comment-avatar
    Mr Mixed Race 8 years ago

    Only naive people keep the little they have in the banks.

  • comment-avatar
    Boss MyAss 8 years ago

    And if you have no money in the bank like me and many-many others ?

  • comment-avatar
    adam jones 8 years ago

    I once deposited 300 US in my account. After 5 months only 200 US was left – bank chrges. I closed my account straight away and put the 200 under my pillow. Whats the point of putting ones hard earned cash in a savings account when the interest is negative? Pamberi neZANU!!!!!

    • comment-avatar
      Scarface263 8 years ago

      I support you thousand percent 1000% … banking back in the days you would know eventually kacash kanowedzera .. savings acc madhara edu would save $ for Xmas n by the time Xmas comes ot would have increased value…. the only acc you can use ryt now is cellcard from kingdom

  • comment-avatar
    Charles Chamunorwa 8 years ago

    Very soon we will witness another extraordinary action under extraordinary circumstances by extraordinary governor-it’s called gonoconomics

  • comment-avatar

    iwe ungati wakatsikwa konzi kekutanga mari ikarova ne bank nhasi kwakuchema hee mari hakuna ku bank wati wadii?rega kutinyaudza?

  • comment-avatar

    Surprise, surprise.
    Journalists cause a panic by ant I government propaganda saying we are returning to the Zimbabwe dollars.
    All over Zimbabwe customers withraw their funds fearful of losing themas journalists predict.
    They lied again and we still have US dollar but all cash remains in private safes.
    Its economic sabotage and you cant get around it with freedom of speech.
    If any person shouts bomb at the airport they correctly go to jail for causing alarm to a few passengers and staff.
    When journalists make untrue statements that cause cash shortages as a result they say we are above the law we are allowed to write lies because we have freedom of expression.
    In order than journalists can gain some respect in Zimbabwe the journalists through their media committees should hand these journalists over.
    Its useless asking journalists to think of their families and their children’s future as we all know they are selfish and only think of their pockets.
    The damage they have caused with false statements to the economy is immense, please media organoisations do something about it, become responsible.

  • comment-avatar

    Oscar is so right. I was saying this for 4 months. My bank is under my mattress