HARARE – The Reserve Bank of Zimbabwe (RBZ) is developing a cash distribution monitoring system to improve access to local currency, targeting persistent shortages in rural communities and underserved parts of the country.
The Zimbabwe Mail, reporting on a statement issued by the central bank in its latest ZiG Cash Distribution and Availability report, said the proposed Cash Distribution and Availability System (CDAS) will track the movement of banknotes and coins and help financial institutions respond more quickly to local shortages.
The RBZ said Zimbabwe had ZiG703.4 million in circulation against a deposit base of ZiG32 billion, equivalent to a cash-to-deposit ratio of 2.2%. While slightly below the three per cent benchmark cited by the central bank, it maintains that the overall supply is sufficient and that the main challenge lies in distribution.
The report shows that banks hold ZiG490.4 million, or 69.7% of cash in circulation, while the public holds approximately ZiG209.3 million. A further ZiG195.1 million is held within bank branches, with ZiG270.4 million remaining in central cash depots awaiting distribution.
Uneven banking infrastructure compounds the problem. Harare accounts for 54.2% of the country’s 428 banking locations, while Matabeleland South and Mashonaland East have the lowest institutional coverage, with seven banks represented in each province.
Under the proposed system, banks will be encouraged to maintain minimum cash balances at branches, improve deliveries to ATMs and monitor shortages before they disrupt withdrawals and business activity.
The initiative is intended to reduce the concentration of cash in central depots and improve its availability in communities where physical currency remains important for everyday transactions.
The move comes as authorities seek to strengthen confidence in the ZiG and expand its use in an economy where access to local-currency cash remains uneven. The effectiveness of the system will depend on how quickly banks translate improved monitoring into more reliable cash distribution.
