RBZ limits instant cash withdrawals
01/02/2012 00:00:00
by Gilbert Nyambabvu
THE central bank has slapped a US$10,000 limit on instant cash withdrawals
and introduced notice periods for larger transactions as the country battles
to contain a worsening liquidity crisis.
Presenting his monetary policy statement Tuesday, RBZ chief Gideon Gono
said: “In order to facilitate country-wide smooth payment transactions as
well as curbing illegal externalization of cash, all financial institutions
are being called upon to moderate instant cash withdrawals to a maximum of
US$10,000.”
In addition notice periods would now be required for higher value
transactions “in order to allow banks sufficient time to prepare”.
Gono said transactions of up to $20,000 would require a one-day notice while
those between $30,000 and $40,000 would require a notice period of three
working days. Customers withdrawing more than US$50,000 must give banks a
notice period of five working days.
“To compliment these measures, the banking public is strongly encouraged to
use the Real Time Gross Settlement system (RTGS), Credit Cards and other
approved electronic money transfer systems in settling their day-to-day
financial transactions,” Gono said.
Finance Minister Tendai Biti last month admitted that the country was facing
serious liquidity challenges.
The government ditched the Zimbabwe dollar in preference for more stable
foreign currencies in 2009 but the lack of external support at a time the
country’s export sectors are struggling to recover has resulted in acute
cash shortages.
The cash crunch was also seen to have forced Biti – who has previously
opposed taking on more debt — to draw-down an additional US$110 million
from an emergency facility with the IMF.
Gono said, going forward, the country should consider securitising its real
estate and mineral assets to help address the “recurrent liquidity
challenges”.
“In view of persistent liquidity challenges that have conspired with limited
access to offshore credit lines to hamstring the attainment of fast paced
growth, serious considerations must be accorded to asset securitization as a
viable option to address recurrent liquidity challenges in Zimbabwe,” he
said.
“Zimbabwe is (also) endowed with vast mineral wealth which remains largely
untapped.
“In order to unlock value from the country’s mineral wealth, mining claims
can be used as a form of payment to cooperating partners that clear Zimbabwe’s
debt. In this regard mineral claims in the gold, platinum and ferro-alloys
sub sectors can be securitised.
“This involves external new borrowing by the country to retire the totality
or part of external debt, using identified public assets as collateral.
Valuation of these assets, in foreign currency, gives an indication of how
much the country can borrow under this option.”