RBZ urged to deal with cash crisis

The Chief Secretary to the President and Cabinet Dr Misheck Sibanda chaired a meeting during which Reserve Bank of Zimbabwe Governor Dr John Mangudya briefed heads of parastatals and some government officials on the recent measures taken by the central bank to deal with the current cash shortages facing the country due to externalisation and the hoarding of cash by some individuals and entities.

The meeting took place in the backdrop of long meandering queues at banking institutions and difficulties in carrying out transactions by the ordinary people.

Stakeholders and the public believe it is high time the central bank used all the legal instruments and policies enshrined in all acts that it administers to deal with the economic challenges facing the economy, chief among them externalisation and the hoarding of cash which have ached the nation.

According to the Bank Use Promotion Act, every business has to deposit funds in the formal financial system of which failure to do so is a punishable crime which carries penalties of up to half a million dollars if one fails to comply with the act.

Another instrument which stakeholders say is not being used is the Credit Reference Bureau which ensures that only deserving people and business entities access loans from banks.

The financial sector is reported to be inundated with bad debts which is also stifling their operations.

The challenges relating to the liquidity crunch in the country demand that urgent action be taken to deal with the culprits of externalisation and hoarding to ensure that every Zimbabwean gets easy access to their hard earned cash.