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No cash crisis in Zimbabwe- RBZ boss claims

by Staff Reporter
16 Apr 2017 at 08:24hrs | Views
Reserve Bank of Zimbabwe Governor John Mangudya has claimed that there is no cash crisis in the country saying financial indiscipline was rife.

He said U$900 million in cash and bond notes/coins worth $136 million are circulating in Zimbabwe.

However, several banks have drastically reduced daily withdrawal limits to as low as $20.

"The RBZ estimates that there is around US$900 million of cash in circulation, and this is measured when you are using the Kalman filter and other methodologies to measure the amount of money in the country.

"This, together with bond notes, is substantially in line with best practice where the ratio of cash in circulation to deposits is around 10-20 percent.

" We cannot call it a cash crisis, but a crisis of indiscipline, productivity and lack of business management" he told Sunday Mail.

Zimbabwe has been grappling with cash shortages since April 2016.

Last week, the RBZ set the cashback limit at $20 per day and authorities have deployed 32 540 point-of-sale machines to promote plastic money use.

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Source - SundayMail/Byo24News