Published by the government of Zimbabwe
11 September 2008
Harare — THE Reserve Bank of Zimbabwe Governor Dr Gideon Gono says the central bank will continue to look at withdrawal limits with a view of increasing them.
Dr Gono, who was addressing captains of industries, security chiefs and journalists yesterday, did not, however, indicate when the next review would be effected.
There has been an outcry from the banking public that the withdrawal limit of $500 is now very insignificant taking into account the rapid increase in the prices of goods and services.
He said that the cash challenges were a temporary phenomenon, which will pass, and Zimbabweans will look back and laugh at themselves.
However, Dr Gono said as a central bank their desire was not to keep promoting the use of cash but to transform the economy into a cashless one as the country is the only one where the demand for cash continues to go up.
"We are desirous of promoting a cashless society that is in conformity with best economic practices," he said.
He added that they were keen to follow in the footsteps of other countries, which had now abandoned the use of cash and cheques and are now using plastic money such as credit and cash cards.
However, it was pointed out that some retailers were taking advantage of people using bank cards in their shops by charging a 10 percent mark-up for use of point of sale machines.
In response Retailers Association of Zimbabwe chairman, Mr Willard Zireva said while the allegations were true, none of their members is involved.
He challenged those with information to the contrary to approach the Association so that remedial action could be taken.
Withdrawal limits were last reviewed two weeks ago to $500 but the amount has since been eroded by inflation such that it was no longer useful to the banking public.
Dr Gono said the current cash constraint is a manifestation of the challenges that the country is facing.
Dr Gono challenged banking executives to intensify the blitz on their foreign currency tellers as some of them were engaged in clandestine activities.
He said they were aware that some tellers were receiving deposits from clients but were not receipting these while security guards were diverting clients intending to change their money to their friends outside the banking system.
"We will be calling you for a cup of tea to discuss what we know," he said.
Meanwhile, members of the public who have been duplicating daily limit transactions have blamed their actions on the central bank for failing to raise the maximum withdrawal limit from the current $500.
Individuals interviewed said the limit does not reflect the prevailing hyperinflationary environment that requires an to have at least $3 000 per day that will cover transport costs and food.
A former ZB Bank account holder, Mr Francis Mukora whose account was closed called on the powers that be to be lenient on offenders saying they did it out of desperation.
"Were it not for the $500 withdrawal limit, I don't think it would have amounted to this, but then the circumstances prevailing in the economy forced me to do duplicate withdrawals. At least a fee penalty from the Reserve bank would have been sufficient," he said.
A Chitungwiza resident who refused to be named said the $500 withdrawal limit was pathetic in the face of rising inflation.
"A trip to and from Chitungwiza is costing no less than $600 and this goes on to show how inadequate the maximum withdrawal is," he said.
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