News / National
Obscure multi-currency usage blamed for cash shortages -RBZ
04 May 2016 at 07:46hrs | Views
The Reserve Bank of Zimbabwe boss John Mangudya has blamed current cash shortages to people predominantly using USD for almost all transactions.
The USD has substituted all the other currencies such as the rand, pound and the euro which were in use at the commencement of the multi-currency system in 2009.
Mangudya said the switch from other currencies to the USD is due to its strength which is now considered to be a safe haven currency throughout the world.
He said RBZ will this week announce policy measures to deal with the problem of cash shortages which have been experienced in some banks.
Several banks have imposed a maximum withdrawal limit of $200 and $300.
"The market-friendly policy measures are going to focus on the sources, distribution and utilisation of foreign exchange in Zimbabwe," said Mangudya.
RBZ says the strength of the USD also encourages hoarding and exportation of cash since it is a safe haven currency or asset.
Source - the herald
