RBZ limits cash withdrawals

HARARE - The Reserve Bank of Zimbabwe (RBZ) yesterday capped bank and ATM withdrawals at $1 000 per card daily and also imposed limits on the amount of cash individuals can take out of the country from the current $5 000 to $1 000.

RBZ governor John Mangudya told a news conference last night that anyone caught smuggling out amounts above the stipulated figures faced arrest.

The central bank chief also announced the introduction of so-called “bond notes” in the next three months backed by the Cairo-based African Export Import Bank, which he said will inject $200 million into Zimbabwe’s economy.

“The bond coins and notes shall continue to operate alongside the currencies within the multi-currency system and at par with the United States dollar,” he said.

“The Zimbabwean bond notes of denominations of $2, $5, $10 and $20 shall therefore be introduced in future, as an extension of the currency family bond coins for ease of portability in view of the size of the $200 million backed facility.”

He declined that this was akin to a backdoor re-introduction of the Zimdollar.

The measures were aimed at easing ease acute shortages of currency that have caused dollar supplies to vanish, triggering long queues at banks.

Mangudya said government was also moving to configure the Real Time Gross Settlement (RTGS) system into a multi-currency platform to add the rand, euro and bond currency. The new RTGS system is expected to go live on June 13, 2016.

He said government had reached the conclusion that the multi-currency system was not functional at the moment on the back of the cash hiccups the country has been experiencing.

Mangudya said government was “urging” all retailers, schools, government departments and all other traders and vendors who dealt in cash to display international exchange rates as well as use Point of Sale (POS) machines.

“Lack of POS machines has increased the demand for cash, so we are urging any organisation that deals in cash to have POS services,” he said.

“Penalties for lack of POS machines will definitely come but we always believe in moral satin, if it fails we use Money Laundering Act, fines specified in the Act.”

Comments (13)

The country should adopt the Rand and only the Rand as the official currency. This will solve a lot of problems including cash availability and export drive.

Dzvuke Muchaina - 5 May 2016

Oh! My God, is this the beginning of the 2008 situation again. Can anyone tell us what is going on. PAKAUYA USD TAKATI NHAMO YAPERA. ko!! chii futi. BOND racho richatenga here?. WAKE-UP ZIMBABWE

martin - 5 May 2016

You can rig elections but you cannot rig the economy.

Aluta Continua - 5 May 2016

there goes jon panonetsa mangudya! the boy is treadinng gideon's trail, step by step, concocting the pathetic black magic economics for the ailing economy instead of pointing the cause of the kantry's problems. lets breast for the hoarding of US$ and the circulation of the evil bonds in exchange for the scarce USD at usurious rates! suffer kusvika Mambo adzoka.

SaManyika Chaiye - 5 May 2016

the govt must be applauded for this timely intervention ,such a shrewd move to alleviate the shortage of currency thru the issuance of bond notes is what was needed.the detractors have been shamed,the measures to curtail externalisation will also ensure that we have sufficient liquidity,the govt must also be thanked for having the wisdom to encourage the use of plastic money which will result in money circulating in the official system,with these measures,the long queues at banks will disappear and local business will benefit from increased liquidity

truth - 5 May 2016

Here goes another Zim RBZ GOVERNOMICS , why is it that Zimbabwean Reserve Bank Governors weld so much power on the zimbabwean economy.The country should have spoken what they want by means of a Referendum not say we wake up and the Reserve Bank Governor zvaanenge achifunga akarara kumba kwake zvotonzi ndizvo the whole country should accept.Its the same as to the bedroom politics that's obtaining in our country right now.

tichiona - 5 May 2016

There will never be stability, economically or socially in Zimbabwe until rule of law is restored, human rights and animal rights are honoured, the leaders stop being oppressive, every man and woman is allowed to vote for whom they wish without fear. I am afraid as long as the above are not respected Zimbabwe will continue to suffer.....VaMangudya, it's not about limiting the money people withdraw from banks that's gonna solve our problem as a country, it's about respect for the above-mentioned. Without respect for that, no stability in Zim will ever be achieved, no investors will come and this is just the beginning of worse things to come. The US$ is way too big a currency for Zim, you cannot use one of the biggest currencies in world in a country were there's very little to almost no production at all, Zim needs to export to get foreign currency, ie, US$ (remember this is not our currency). We are not exporting anywhere close to enough, I mean this govt is in big trouble and doesn't seem to realize it and still claims everything is ok, what a shame to you Robert Mugabe and your friends, you are such coward morons. We need to respect all the things I have mentioned above before you can think of anything that you think may resuscitate the economy and dignity to our people. Unbelievable Zim has gotten to this and this will get worse by the day.

misty - 5 May 2016

I wonder if the restrictions on taking out money also apply to the Govt. ministers as they are the only ones who have money and are looting the country.

Zims - 5 May 2016

very soon the unwashed money changers will be loughing at the few remaining working pple. bread & milie meal will desert the shelves. I feel pity for the commuting pple! service stations will cease to stock petroleum. motorsts will be scavenging for the few drops of highly priced substandard fuel. saka taakudzokera pakare paya ere? poverty is gonna cause brimstone & quake!

SaManyika Chaiye - 5 May 2016

The suffering of the Zim population is going to be extended and the people have suffered enough to know how to respond. The supermarkets are going to be empty once the current stock runs out.

Obed Karioki - 6 May 2016

there comes demand pull inflation again ,so much money in circulation ,giving the majority buying power ,to the extend of demanding more than what can be supplied ,Resulting in empty stores .thought we learned from 2008 .zvinhu zvikatanga kushaika this time vanhu vanodyanana chete .the days are now evil .

Josh Tanyah - 9 May 2016

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