Story by Owen Mandovha, Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has revealed that millions of dollars are lying idle in the country due to a growing trend by business of keeping money in cash deposit boxes, saying the practice deprives the economy of the much-needed liquidity.
Announcing his 2025 Monetary Policy Statement, RBZ Governor Dr John Mushayavanhu indicated this financial disintermediation which is stifling economic growth by depriving economic agents of the much-needed liquidity.
He said the Financial Intelligence Unit of the Reserve Bank of Zimbabwe will not simply watch but will deal with this malpractice.
“There are manufacturers who are supplying goods to the informal market but are not banking their proceeds. They are keeping these monies in their cash boxes which is not in line with the Anti Money Laundering Act. The FIU will not just watch and will dismantle this practice,” he said.
The apex bank chief added that keeping huge sums of cash is needlessly risk given the upward review in limits on prepaid credit and attractive interest rates on savings.
“The issue here is that robbers were way leading buses, especially cross borders traders and rob them of their cash so there is no need to keep cash, given that one can just upload their cash into a card which we have increased to US$1 million. We have also adjusted interest on savings account which we think makes huge sense for one to bank their savings.”
As part of efforts to promote a culture of saving and bolster confidence in the local banking sector, the BZ has implemented an incremental increase in interest rates on savings accounts.
