Zimbabwe banks face cash crunch, central bank blames distribution problem


HARARE (Reuters) – Some Zimbabwean banks are struggling to provide cash and are limiting amounts to individuals and companies, which the central bank blamed on the financial institutions underestimating demand and failing to improve cash distribution to branches.


Since Monday, customers from several banks have struggled to access money from automatic teller machines while banking halls daily withdrawals have been limited to as low as $200.

At three different banks in Harare on Wednesday, a Reuters witness saw customers being told to wait until there was enough money from deposits before being served. Several bank machines were also not dispensing cash.

“It is not a problem of the availability (of cash). Its more about distribution. Banks underestimated the demand for cash,” Reserve Bank of Zimbabwe governor John Mangudya told the privately-owned NewsDay newspaper.

Mangudya was unavailable for further comment.

Last month, Mangudya capped daily withdrawals at $10,000, saying amounts above that figure required central bank approval. He also said individuals and companies had illegally exported $1.8 billion in 2015.

Zimbabwe does not have its own currency, which it dumped in favour of the U.S. dollar in 2009 after hyper-inflation reached 500 billion percent, at the height of an economic crisis.

Local banks have to import bank notes, mostly from the United States and South Africa because Zimbabweans mainly use the U.S. dollar and rand currency. The sterling pound, euro and Chinese yuan are also legal tender.

Share this:

Arts & Entertainment

Arts & Entertainment

Damian Marley’s deep love for Africa

24th May 2017 Staff Reporter 0

Damian Marley’s 2010 collaboration album with Nas, Distant Relatives is littered with references to Africa’s rich cultural background. During the recording of the album Marley and Nas dug through archives of African music in search […]

3 Comments on Zimbabwe banks face cash crunch, central bank blames distribution problem

1 Trackbacks & Pingbacks

  1. Global markets hold breath as they wait for US election result – 263AfricaNews

Leave a Reply

Your email address will not be published.