RBZ sets withdrawal limits

The Reserve Bank of Zimbabwe has introduced new measures to ease cash challenges and stabilising the economy.

Reserve  Bank of Zimbabwe Governor Dr John Mangudya told the media that new measures which include the conversion of foreign exchange receipts into rands and euros will spread the use of other currencies.

He said the central bank will in the future introduce $2, $5, $10 and $20 Zimbabwe bond notes backed by a US$200 million facility.

The central banks has also set daily cash withdrawal limits at US$1000 while the maximum cash to be taken outside the country has been reduced to US$5 000 from US$10 000.

"The measures will go a long way in increasing economic confidence within the economy," said Dr Mangudya.

Banks have also been directed to reduce lending rates from 18 percent to 15 percent.