News / Local
Civil servants responsible for cash crisis - RBZ
15 Apr 2017 at 23:53hrs | Views
The Reserve Bank of Zimbabwe has blamed civil servants salaries for continued cash crisis which has forced several banks to reduce daily withdrawal limits to as low as $20.
RBZ boss John Mangudya said monthly cash demand of more than $200 million to meet by civil servants salaries was 'putting a strain on the supply of bank notes in the market'.
"We are advising that queues for cash at banks occur mainly on Government paydays as Government employees convert their virtual earnings into physical cash," he told state controlled Sunday Mail.
"This mismatch (of physical cash demand) is the one causing queues at banks as banks and the Reserve Bank would be required to find and or import foreign exchange cash to meet the physical cash demands for Government and other sectors' employees.
"Government is the biggest employer in the country and its employees need cash demands of more than US$200 million monthly.
"We hope the continuous unavailability of high value denominations of US$50 and US$100 bills will mitigate against money laundering and capital flight."
RBZ boss John Mangudya said monthly cash demand of more than $200 million to meet by civil servants salaries was 'putting a strain on the supply of bank notes in the market'.
"We are advising that queues for cash at banks occur mainly on Government paydays as Government employees convert their virtual earnings into physical cash," he told state controlled Sunday Mail.
"This mismatch (of physical cash demand) is the one causing queues at banks as banks and the Reserve Bank would be required to find and or import foreign exchange cash to meet the physical cash demands for Government and other sectors' employees.
"We hope the continuous unavailability of high value denominations of US$50 and US$100 bills will mitigate against money laundering and capital flight."
Source - Sunday Mail
