Plastic money better than bond notes, says Barclays Bank ZImbabwe

Barclays Bank managing director George Guvamatanga has suggested that the controversial bond notes are not necessary.

He  said plastic money usage would do a far better job and  should be encouraged.

The Reserve Bank of Zimbabwe (RBZ) is promoting the use of plastic money to reduce the demand for cash transactions in light of the cash crisis which has resulted in banks placing a $100 cap on withdrawals.

According to reports, Guvamatanga said government should take advantage of increasing usage of electronic transactions which is over 400 % over the past month.

"The usage of plastic money has grown and we have over 6-7 million that used to happen in cash now happening in plastic money," he is quoted saying.

"Considering that plastic money usage has grown  over four  times and is continuing to grow and the amount of bond notes to be introduced and also  considering people don't like them, given these sentiments, if you were to ask me, I
would take a percentage of the $200 million and make it easier for  people to transact in plastic money".

Financial sector is planning to increase the number of POS machines from about 18 000 machines to 30 000 machines to reduce reliance on cash by the transacting public.

However, he said he is not against the bond notes which have been rejected by business groupings and citizens.

"Don't misquote me on my position I'm not saying I'm against bond notes or I'm for them. I'm simply giving facts." he said