RBZ rescinds “mobile” cash ban
The Reserve Bank of Zimbabwe has rescinded its earlier decision to suspend cash-out and cash-in transactions, but has introduced strict rules on the processes.
In a statement, the Central Bank said although it has revised its decision, there will be close monitoring.
“Payment System Providers and Agents are hereby advised that the cash-out facility is now capped at $100 per transaction with immediate effect. Related to that, existing operational cash-in and cash-back limits shall remain.”
Just like analysts had suggested, the RBZ has increased money supply in an attempt rectify the cash shortage.
“Furthermore, the Reserve Bank will be injecting cash into the economy without changing money supply. In this regard, banks will exchange existing RTGS balances for cash thus maintaining the monetary base unchanged,” the statement said.
Following the ban, Econet had approached the High Court seeking a suspension to the ban.