Liquidity challenges ease John Mangudya
John Mangudya

John Mangudya

Harare Bureau
RESERVE Bank of Zimbabwe governor John Mangudya yesterday said local banks had imported enough cash following a temporary shortage in the past few days that crippled operations. Most automated teller machines ran out of cash this week due to growing demand as pay dates for most civil servants and the private sector coincided.

“February was a short month and demand for salary payments, for both the public and the private sector, far exceeded the cash that was available,” said Mangudya in an interview.

The central bank governor encouraged the banking public to use plastic money, particularly given that the country was using multi-currencies, which it did not print and control. “We’ve imported enough money, so the public shouldn’t panic. But I also urge people to use point of sale when transacting. It’s a national responsibility for everyone especially at a time we’re not in a position to print money.”

Mangudya said Zimbabweans should do away with their appetite for keeping “cash in their pockets.” There are local businesspeople who do not bank their daily takings, preferring to keep the money in safes at home, fuelling cash shortages.

At the height of economic challenges in 2008, Zimbabwe opted for a multi-currency regime anchored on the US dollar. The objective was to stabilise the economy and establish a credible nominal anchor.

A survey conducted by our Harare Bureau yesterday showed that the situation had significantly improved with many ATMs now dispensing cash. Some banking officials confirmed that the situation had improved from previous days that saw some banks shutting down many ATMs.

“It was a temporary situation which was caused by huge demand by civil servants and workers in the private sector but the situation has improved,” said an official with a local bank.

Economic analysts said the government should also promote the use of plastic money and mobile financial services as attitude towards these had not been “very encouraging.”

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