Zimbabwe

Zim's central bank to force businesses to deposit their cash

2016-06-06 14:56
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Brother of Zimbabwe's youngest ever uni grad is also a star
Brother of Zimbabwe's youngest ever uni grad is also a star

Zimbabwe’s Maud Chifamba, the teenager whizz-kid who made history by becoming the University of Zimbabwe's youngest-ever graduating student at the age of 18 this week, says her little brother is also a star.

Harare - Battling cash shortages, Zimbabwe's central bank is to carry out raids on embattled businesses and traders to force them to deposit their daily takings, state media reported Sunday.

The Sunday Mail quoted central bank chief John Mangudya as saying that those who didn't bank their cash would risk "losing their licence or incurring huge penalties".

Although government officials have given differing reasons for the shortage of cash (Vice President Emmerson Mnangagwa last week accused SADC countries of "raiding" Zimbabwe's US dollar supplies), the bank chief blamed "a short circuit in the circulation system", referring to business and traders' unwillingness to bank cash.

In a separate report, that will likely fuel the authorities' suspicion of national and foreign businessmen, two Rwandans were arrested at Harare International Airport on Sunday afternoon, trying to smuggle out $87 400, the state Zimbabwe Broadcasting Corporation reported.

Some of the money was stuffed inside one of the men's socks, the report said.

It is now hard to withdraw cash from Zimbabwe's banks, with claims that corporate clients at some banks were only being allowed to withdraw $500 a day. 

Zimbabweans were spooked by Mangudya's announcement early last month that bond notes, a local version of US dollars, are to be introduced later this year. Fears - which the authorities say are misplaced - that bank balances will be converted into bond notes have sent many rushing to empty their accounts.

Farmers with large numbers of workers, who are used to being paid in cash, have been told they must all open bank accounts - even though some of the workers earn as little as $100 a month and bank charges are high.

The authorities are invoking a section of the Bank Use Promotion and Suppression of Money Laundering Act which compels traders or parastatals to bank their cash "no later than the close of business hours on the day following that on which the cash is received," according to the Sunday Mail.

Read more on:    zimbabwe  |  southern africa

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