The Sunday Mail
Tomorrow, the Reserve Bank of Zimbabwe (RBZ) releases a new set of coins and notes to cushion the transacting public from the obtaining unscrupulous cash arbitrage.
As much as the cash injection is more than welcome, monetary authorities need no reminding that injecting cash into the system without attending to existing leakages might lead to other serious nefarious activities.
It is sad, and shocking, that our economy has more cash available in the informal channels than the banking system.
Though no one has proffered a plausible explanation as to how the economy ended up in such a skewed arrangement, it can only be assumed that there is some level of back-hand dealing between those in the banking sector and those on the streets, where most of the cash is in circulation.
Tomorrow’s cash injection, therefore, is a chance for monetary and fiscal authorities to restore the confidence that has been lacking in the banking system for the better part of the past decade.
And more significantly, the cash injection comes a few days before Finance and Economic Development Minister Professor Mthuli Ncube announces the projected Budget for 2020.
The two events — the cash injection and the Budget announcement — should be viewed and read in the same lines. And they should be complementary to each other, especially in regard to confidence-building.
The transacting public has had to endure the pain of buying cash on the streets, at times for rates as much as 50 percent. Meaning that if you have $100 in your mobile wallet, or your bank account, you would get only $50 in cash. And this amount being highly dependant on whether one prefers coins or notes.
Besides bringing relief to the majority of the transacting public, tomorrow’s cash injection should offer a chance for the Government, through the Ministry of Finance and Economic Development, RBZ and all commercial banks to self-introspect, look for and plug all leakages that have been commonplace in the banking sector.
That self-introspection will, ultimately and justifiably, lead to the restoration of confidence in the banking sector, and the economy in general.
The cash injection should be yet another indelible footprint by the Government as it asserts the economic journey that it started in February by floating the exchange rate, which was followed by Statutory Instrument 142 (which banned the use of multi-currencies in settling local obligations) in June.
And as often acknowledged by both Minister Ncube and President Mnangagwa, the road to economic recovery is arduous.
But that it is not an easy one, should not be an excuse for the banking sector, in particular, because that is where the cash leaks happen, to trample on the rights of its customers — the transacting public.
The injection should see the reversal of a misnomer, where cash is readily available on the streets and not in banks.
The President has consistently said Zimbabwe is open for business, and, honestly, it cannot be business as usual if the prevailing cash imbalances — where the streets have more cash balances than banks.
Inasmuch as the move by the central Bank is welcome, other State agencies have to come to the party, to ensure financial inclusion for everyone.
For example, why is the Zimbabwe Republic Police not arresting cash merchants that litter the country’s streets? Do police need any extra Statutory Instrument to execute their mandate?
In Harare, for instance, cash merchants sell money in the First Street Mall, and at times right by the police booth.
In Mbare, almost every corner is a cash booth. A casual stroll at the market will show that coins and notes are displayed for sale, just like tomatoes.
Rather, every town in the country has its cash corner, where cash can be bought for a premium.
And what role are mobile networks playing in allowing their cash-out, cash-in agents to charge abnormal rates in broad daylight? It does not help for mobile operators to seem to turn a blind eye to the sins and greed being undertaken by their agents. And yet mobile networks will have the temerity to ask the public to report any agents that are flagrantly abusing their facilities. Are the agents and mobile networks working hand-in-glove?
As the country awaits tomorrow’s release of new coins and notes, our prayer will be that bank withdrawal limits will be increased to match economic trends.
The weekly limit of $300 no longer adds up. The suppressed limits, in a way, contribute to cash finding its way onto the black market as demand outweighs supply.
For it to be a believer’s journey, it has to be none but ourselves.
Arduous as it may be, it still has to be walked.
New notes: Let’s plug the leaks
The Sunday Mail
Tomorrow, the Reserve Bank of Zimbabwe (RBZ) releases a new set of coins and notes to cushion the transacting public from the obtaining unscrupulous cash arbitrage.
As much as the cash injection is more than welcome, monetary authorities need no reminding that injecting cash into the system without attending to existing leakages might lead to other serious nefarious activities.
It is sad, and shocking, that our economy has more cash available in the informal channels than the banking system.
Though no one has proffered a plausible explanation as to how the economy ended up in such a skewed arrangement, it can only be assumed that there is some level of back-hand dealing between those in the banking sector and those on the streets, where most of the cash is in circulation.
Tomorrow’s cash injection, therefore, is a chance for monetary and fiscal authorities to restore the confidence that has been lacking in the banking system for the better part of the past decade.
And more significantly, the cash injection comes a few days before Finance and Economic Development Minister Professor Mthuli Ncube announces the projected Budget for 2020.
The two events — the cash injection and the Budget announcement — should be viewed and read in the same lines. And they should be complementary to each other, especially in regard to confidence-building.
The transacting public has had to endure the pain of buying cash on the streets, at times for rates as much as 50 percent. Meaning that if you have $100 in your mobile wallet, or your bank account, you would get only $50 in cash. And this amount being highly dependant on whether one prefers coins or notes.
Besides bringing relief to the majority of the transacting public, tomorrow’s cash injection should offer a chance for the Government, through the Ministry of Finance and Economic Development, RBZ and all commercial banks to self-introspect, look for and plug all leakages that have been commonplace in the banking sector.
That self-introspection will, ultimately and justifiably, lead to the restoration of confidence in the banking sector, and the economy in general.
The cash injection should be yet another indelible footprint by the Government as it asserts the economic journey that it started in February by floating the exchange rate, which was followed by Statutory Instrument 142 (which banned the use of multi-currencies in settling local obligations) in June.
And as often acknowledged by both Minister Ncube and President Mnangagwa, the road to economic recovery is arduous.
But that it is not an easy one, should not be an excuse for the banking sector, in particular, because that is where the cash leaks happen, to trample on the rights of its customers — the transacting public.
The injection should see the reversal of a misnomer, where cash is readily available on the streets and not in banks.
The President has consistently said Zimbabwe is open for business, and, honestly, it cannot be business as usual if the prevailing cash imbalances — where the streets have more cash balances than banks.
Inasmuch as the move by the central Bank is welcome, other State agencies have to come to the party, to ensure financial inclusion for everyone.
For example, why is the Zimbabwe Republic Police not arresting cash merchants that litter the country’s streets? Do police need any extra Statutory Instrument to execute their mandate?
In Harare, for instance, cash merchants sell money in the First Street Mall, and at times right by the police booth.
In Mbare, almost every corner is a cash booth. A casual stroll at the market will show that coins and notes are displayed for sale, just like tomatoes.
Rather, every town in the country has its cash corner, where cash can be bought for a premium.
And what role are mobile networks playing in allowing their cash-out, cash-in agents to charge abnormal rates in broad daylight? It does not help for mobile operators to seem to turn a blind eye to the sins and greed being undertaken by their agents. And yet mobile networks will have the temerity to ask the public to report any agents that are flagrantly abusing their facilities. Are the agents and mobile networks working hand-in-glove?
As the country awaits tomorrow’s release of new coins and notes, our prayer will be that bank withdrawal limits will be increased to match economic trends.
The weekly limit of $300 no longer adds up. The suppressed limits, in a way, contribute to cash finding its way onto the black market as demand outweighs supply.
For it to be a believer’s journey, it has to be none but ourselves.
Arduous as it may be, it still has to be walked.
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