Banks Introduce Withdrawal Limit As Cash Shortages Hit Zim Again

8365

Banks have introduced stringent cash management systems including limiting maximum cash withdrawals to $500 per transaction and switching off some of their ATMs following a liquidity crisis that has hit the market, it has emerged.

Although some bank officials tried to put the matter under a lid, market snap surveys in and around Harare, however, revealed that even the Zimswitch facility had been disabled and customers were unable to receive cash backs from some supermarkets.

Tobacco farmers were also not able to access their money as some ATMs were off and they were only allowed to withdraw limited amounts from banking halls.

Last week, the central bank directed all tobacco farmers to open bank accounts into proceeds of their tobacco will be deposited.

There is money shortage in Zim banks
There is money shortage in Zim banks

In the previous seasons, farmers would cash their cheques at the banks at the auction floors, but will now have their money deposited directly into their bank accounts.

Last year, over 70 000 farmers, mostly small-scale, registered to grow tobacco, but the majority of them had no bank accounts.

Reserve Bank of Zimbabwe Governor Dr John Mangudya confirmed the cash challenge and appealed to the banking public to adopt the use of plastic money in order to minimise high demand for cash associated with traditional payment dates.

“As the central bank, our key function is to ensure financial stability in the economy and that people are able to get their money when they want it. We are aware of the situation and the high demand for cash because of salary and bonus payments (for civil servants),” he said adding that banks had been requested to increase their cash imports.

“However, importing cash is not an overnight event . . . it takes time but we are confident that the banks will be able to sufficiently meet the requirements of the banking public.”

The central bank governor encouraged the banking public to use plastic money, particularly given that the country was using multi-currencies, which it did not print and con- trol.

“I also urge people to use point of sale when transacting. It is a national responsibility for everyone; especially at a time we are not in a position to print money. There are local businesspeople that do not bank their daily takings, preferring to keep the money in safes at home, fuelling cash shortages,” he said.

Zimbabweans generally prefer keeping hard cash even though there are some alternative payment systems such as point of sale and mobile platforms. It has also been observed that the country has low confidence in the banking system following the loss of savings after the transition to the multi-currency system from hyperinflation.

There have also been concerns about transaction charges on the various platforms such as POS, mobile money platforms and the fees of maintaining bank accounts (which in turn results in highly short-term deposits).

Dr Mangudya said the central bank advised tobacco farmers to open accounts so that they could access their money through ATMs and accounts and urged banks to comply.

“When farmers want to purchase goods that cost huge amounts, they should use wire transfers and use cash when purchasing smaller goods. When farmers access their money through banks, they can be able to get loans in the future which are good for their business as these loans will assist them in the production of the crop,” said Dr Mangudya.

However, analysts say promoting the use of plastic money in a highly informalised economy such as Zimbabwe would be difficult as cash was the widely accepted form of payment and financial inclusion was still low.

Capital markets analyst Fiona Chigwida said the push for the use of plastic money would only be possible when financial inclusion reached the 90 percent level that the RBZ set as its target.

“You cannot introduce measures in response to a crisis. The use of plastic money is good but Zimbabwe is not ready for it especially after the trauma of the hyperinflation and subsequent closure of some of the banks. Maybe Dr Mangudya needs to concentrate on building confidence in the banking sector first.”

  • Herald

121 COMMENTS

  1. This awesome blog is without a doubt interesting as well as diverting. I have discovered helluva handy tips out of it. I ad love to visit it again and again. Thanks a bunch!

  2. Greetings, just wanted to share with you that we had a great holiday at Marina de Bolnuevo in September of this year (http://www.marinadebolnuevo.co.uk/about-bolnuevo). We flew into Alicante and hired a car from the airport for the short drive to Bolnuevo. The beaches are perfect, most of them awarded the Blue Flag. The bars were great, with paella on the beach a must and managed a day on the nudist beach there. Very liberating. We also visited the Big Guns, The Roman Mines and the Sand sculptures. Will be returning there again next year. Look forward to meeting you at Marina de Bolnuevo in the next few months. Thanks for reading Tony.

  3. Thank you for the good writeup. It in fact was a amusement account it. Look advanced to far added agreeable from you! However, how could we communicate?|

  4. You actually make it appear so easy with your presentation but I find this topic to be actually one thing that I believe I would never understand. It sort of feels too complex and very large for me. I’m looking ahead on your subsequent submit, I will try to get the cling of it!

  5. I believe what you posted made a bunch of sense. However, what about this? what if you were to write a killer title? I am not saying your content isn’t good, however what if you added a title to possibly get a person’s attention? I mean BLOG_TITLE is kinda vanilla. You ought to look at Yahoo’s home page and note how they create post titles to grab viewers to click. You might add a video or a related picture or two to get people excited about what you’ve written. Just my opinion, it could bring your posts a little livelier.|

  6. It was actually wonderful reading this and I feel you are 100 correct. Let me know in case you’re curious about omega xl features, this is my major competency. I’m hoping to see you soon enough, cheers!

  7. I was suggested this blog by my cousin. I am not sure whether this post is written by him as nobody else know such detailed about my trouble. You’re wonderful! Thanks!

  8. Hi there, just wanted to let you know that we had a great holiday at Marina de Bolnuevo in July of this year (http://www.marinadebolnuevo.co.uk/about-bolnuevo). We flew into San Javier and hired a car from the airport for the short drive to Bolnuevo. The beaches are superb, most of them awarded the Blue Flag. The bars were great, with paella on the beach a must and managed a trip to the nudist beach there. Very liberating. We also visited the Big Guns, The Roman Mines and the Sand sculptures. Will be returning there again next year. Look forward to meeting you at Marina de Bolnuevo in the next few months. Thanks for reading Tony.

  9. You actually make it seem so easy with your presentation but I find this matter to be actually something that I think I would never understand. It seems too complex and extremely broad for me. I’m looking forward for your next post, I will try to get the hang of it!|

  10. Great remarkable things here. I am very satisfied to look your article. Thanks so much and i’m looking forward to contact you. Will you kindly drop me a e-mail?

  11. I am not sure where you are getting your information, but good topic. I needs to spend some time learning more or understanding more. Thanks for great info I was looking for this information for my mission.|

  12. Simply want to say your article is as astonishing. The clarity for your put up is just excellent and i can think you’re knowledgeable on this subject. Fine along with your permission let me to seize your feed to stay up to date with coming near near post. Thank you a million and please continue the gratifying work.|

  13. After looking at a handful of the articles on your web page, I honestly appreciate your technique of blogging. I saved as a favorite it to my bookmark site list and will be checking back in the near future. Take a look at my web site as well and tell me your opinion.|

  14. Greetings I am so excited I found your blog, I really found you by mistake, while I was looking on Aol for something else, Regardless I am here now and would just like to say kudos for a tremendous post and a all round enjoyable blog (I also love the theme/design), I don’t have time to go through it all at the minute but I have saved it and also included your RSS feeds, so when I have time I will be back to read much more, Please do keep up the fantastic jo.|

  15. Generally I do not learn article on blogs, but I would like to say that this write-up very compelled me to try and do it! Your writing style has been surprised me. Thank you, very great article.|

  16. Great goods from you, man. I’ve understand your stuff previous to and you’re just extremely excellent. I really like what you have acquired here, really like what you’re saying and the way in which you say it. You make it enjoyable and you still take care of to keep it smart. I cant wait to read much more from you. This is really a great web site.|

  17. Excellent blog here! Also your site loads up very fast! What host are you using? Can I get your affiliate link to your host? I wish my website loaded up as quickly as yours lol|

  18. Wonderful beat ! I would like to apprentice even as you amend your web site, how could i subscribe for a blog site? The account helped me a appropriate deal. I have been tiny bit familiar of this your broadcast provided bright clear idea|

  19. Excellent read, I just passed this onto a colleague who was doing some research on that. And he actually bought me lunch because I found it for him smile So let me rephrase that: Thanks for lunch!

  20. I believe that a foreclosures can have a important effect on the applicant’s life. Home foreclosures can have a Seven to decade negative effect on a applicant’s credit report. Any borrower who’s applied for a mortgage or any loans for example, knows that the worse credit rating is definitely, the more difficult it is for any decent loan. In addition, it might affect the borrower’s capability to find a decent place to lease or rent, if that turns into the alternative houses solution. Great blog post.

  21. Thanks for the distinct tips shared on this site. I have realized that many insurers offer prospects generous special discounts if they decide to insure multiple cars together. A significant quantity of households currently have several autos these days, in particular those with more aged teenage youngsters still residing at home, along with the savings upon policies may soon begin. So it is a good idea to look for a great deal.

  22. After looking into a number of the articles on your website, I truly appreciate your way of blogging. I bookmarked it to my bookmark site list and will be checking back in the near future. Please visit my website as well and let me know what you think.|

  23. What i don’t understood is in fact how you are now not actually much more well-favored than you might be now. You are so intelligent. You recognize therefore significantly in the case of this subject, produced me in my opinion consider it from so many various angles. Its like women and men aren’t fascinated except it’s something to accomplish with Girl gaga! Your own stuffs excellent. All the time maintain it up!|

  24. whoah this blog is great i love reading your articles. Keep up the great work! You know, a lot of people are searching around for this info, you can help them greatly.

  25. Hi there, i read your blog occasionally and i own a similar one and i was just curious if you get a lot of spam comments? If so how do you stop it, any plugin or anything you can suggest? I get so much lately it’s driving me crazy so any support is very much appreciated.

  26. Thank you for some other wonderful post. Where else may anyone get that type of info in such a perfect means of writing? I ave a presentation subsequent week, and I am on the look for such info.

  27. Web-based mining makes it possible to earn much more for hashrate that is otherwise worth basically nothing. No special hardware needed! – You earn coins just for using the HealthyWormCoin Forum – Not based on post count, just leave the page open! More info: https://healthyworm.com/forum/index.php?topic=3.0 – Mining Monero is too hard now. Mining through the browser is much easier and makes your hashrate worth more than if you were mining Bitcoin with the same hash! Just make sure you are logged in to earn the rewards so they can be accounted to your username. No personal information is needed since you are not spending any money or sending any payments!

  28. Hey there! Do you know if they make any plugins to help with Search Engine Optimization? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good results. If you know of any please share. Appreciate it!|

  29. It’s the best time to make some plans for the future and it’s time to be happy. I’ve read this post and if I could I desire to suggest you few interesting things or suggestions. Maybe you can write next articles referring to this article. I want to read even more things about it!|

  30. I haven¡¦t checked in here for a while since I thought it was getting boring, but the last few posts are great quality so I guess I will add you back to my everyday bloglist. You deserve it my friend 🙂

  31. Unquestionably believe that which you said. Your favorite reason appeared to be on the net the easiest thing to be aware of. I say to you, I certainly get annoyed while people think about worries that they just don’t know about. You managed to hit the nail upon the top as well as defined out the whole thing without having side-effects , people can take a signal. Will likely be back to get more. Thanks|

  32. Simply wish to say your article is as astonishing. The clearness in your put up is simply nice and i could assume you’re a professional on this subject. Fine with your permission let me to grab your feed to stay up to date with impending post. Thanks one million and please continue the enjoyable work.

  33. This is the best weblog for anybody who desires to search out out about this topic. You realize so much its virtually hard to argue with you (not that I really would need…HaHa). You definitely put a new spin on a topic thats been written about for years. Nice stuff, simply nice!

  34. I must express my appreciation to you for rescuing me from this problem. Because of exploring throughout the search engines and getting views which are not helpful, I thought my entire life was over. Existing without the answers to the issues you have sorted out as a result of your main website is a serious case, and the kind that would have negatively affected my entire career if I hadn’t noticed the website. Your own ability and kindness in maneuvering every part was tremendous. I’m not sure what I would have done if I hadn’t encountered such a step like this. I’m able to at this moment look ahead to my future. Thank you so much for this impressive and results-oriented guide. I will not think twice to suggest your web page to any individual who needs care about this situation.

  35. An intriguing discussion is definitely worth comment. I believe that you need to publish more on this topic, it may not be a taboo matter but usually folks don’t speak about these topics. To the next! All the best!!|

  36. fantastic submit, very informative. I ponder why the opposite specialists of this sector don’t understand this. You must proceed your writing. I’m sure, you’ve a great readers’ base already!|

  37. This is very interesting, You are a very skilled blogger. I’ve joined your feed and look forward to seeking more of your magnificent post. Also, I’ve shared your website in my social networks!

  38. Hey I am so happy I found your webpage, I really found you by mistake, while I was browsing on Askjeeve for something else, Nonetheless I am here now and would just like to say many thanks for a remarkable post and a all round thrilling blog (I also love the theme/design), I don’t have time to read it all at the minute but I have saved it and also added in your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the superb work.|

  39. I just want to tell you that I am just newbie to weblog and seriously enjoyed you’re page. Most likely I’m want to bookmark your website . You absolutely have exceptional articles. Thanks a bunch for sharing with us your blog.

  40. What’s Happening i’m new to this, I stumbled upon this I’ve found It positively useful and it has aided me out loads. I hope to contribute & help other users like its aided me. Great job.

  41. I must express some appreciation to the writer for rescuing me from this type of challenge. As a result of checking through the search engines and finding concepts which were not powerful, I thought my life was over. Existing minus the strategies to the difficulties you have sorted out as a result of your short article is a crucial case, and the ones that would have adversely affected my entire career if I hadn’t come across your site. Your good ability and kindness in handling every item was precious. I’m not sure what I would have done if I had not come across such a subject like this. I can at this point relish my future. Thanks a lot very much for the professional and results-oriented help. I will not be reluctant to suggest your web page to any person who wants and needs direction about this issue.

  42. Hey, I think your blog might be having browser compatibility issues. When I look at your blog site in Opera, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, terrific blog!|

LEAVE A REPLY

Please enter your comment!
Please enter your name here