US dollars disappears from Zimbabwe banking system

US dollars disappears from Zimbabwe banking system
Published: 26 February 2017 (930 Views)

Transactional activity in Zimbabwe in recent weeks indicates a slow disappearance of the United States dollar, which is being replaced by bond notes.

The bond notes were introduced last year under the $200 million export incentive to supplement dwindling dollar supplies due to weak exports.

A survey by Standardbusiness in the central business district last week showed that banks were giving out less and less dollars, which are now available only from Automated Teller Machines (ATMs).

An FBC Bank depositor said the institution was dispensing money depending on the currency they had at the time.

"Sometimes we are given our withdrawals only in bond notes," the depositor said.

"There used to be days when I received my withdrawals in United States dollars or bond notes while other times it was in both denominations.

"But, most of the time now we are receiving bond notes and very rarely in US dollars."

Stanbic Bank was giving out $100 in bond notes inside the bank and another $50 in US$ from ATMs, making a total of $150 daily withdrawals.

Cabs was also giving depositors according to the available currency at that particular time.

"It depends on the branch but money is given out based on what the bank has on the particular day," a Cabs Bank depositor who identified herself as Julia said.

The dollar has also become elusive in supermarkets where customers used to get them through the cashback facility
In an interview with our sister paper, Zimbabwe Independent, RBZ governor John Mangudya confirmed the scarcity of dollars saying banks were holding on to the currency to facilitate foreign payments.

"Each bond note in the economy represents a proportion of up to 5% of the foreign currency earned on exports generated by the economy. It stands to reason therefore that banks are retaining the bulk of foreign exchange for foreign payments," he said.

"Bond notes will continue to circulate in the economy alongside other currencies in the multiple currency system."

According to RBZ statistics, $94 million of bond notes are in circulation against an aggregate value of the export incentive of $107 million.

In a recent monetary policy statement, Mangudya said RBZ was putting in place a redistributable measure that mitigated against skewed concentration of bond notes within the banking sector by limiting the maximum amount of bond notes that each bank should hold at any given point in time in relation to its level and type of transactions.

"This measure is necessary to ensure that bond notes are distributed proportionately according to the customer base or customer profile of each banking institution," he said.

He said the move would ensure that bond notes continued to trade at parity with the US$ and to reflect the fact that they were supported by the $200 million offshore facility.

- the standard

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

MDC dismisses Party Spokesperson

by Staff reporter | 19 June 2018 | 202 Views

MDC Founding Member calls upcoming elections fair and reasonable

by Knowledge Moyo | 19 June 2018 | 153 Views

You are Zimbabwean because Zapu said so

by Ryton Dzimiri | 19 June 2018 | 117 Views

Wining Zanu PF candidate vows to stand as an Independent

by A Mhlongo | 19 June 2018 | 199 Views

Chamisa says Mnangagwa want to kill him

by Staff reporter | 19 June 2018 | 235 Views

Looking for Pythias Makonese, please get in touch

by Ignatius Mabasa | 19 June 2018 | 99 Views

Zimbabwean immigrant appointed new senator in Canada

by Agencies | 19 June 2018 | 155 Views

Mnangagwa's lies exposed

by Staff reporter | 19 June 2018 | 200 Views

WATCH: CCTV sells out POS machine suspected thieves

by Staff reporter | 19 June 2018 | 119 Views

Zimbabwean gangster jailed 24 years in UK

by Agencies | 19 June 2018 | 134 Views

Mnangagwa challenges ZCDC

by Staff reporter | 19 June 2018 | 120 Views

Why digital money makes sense

by Nick Mangwana | 19 June 2018 | 100 Views

RBZ told to 'delegate forex allocation to banks'

by Staff reporter | 19 June 2018 | 120 Views

Govt sets aside $150m for Command Housing

by Staff reporter | 19 June 2018 | 116 Views

Zamalek table Khama Billiat offer

by Staff reporter | 19 June 2018 | 140 Views

UK embassy exposes MDC Alliance

by Staff reporter | 19 June 2018 | 170 Views

Chamisa unfit to lead Zimbabwe says Mangoma

by Staff reporter | 19 June 2018 | 134 Views

Adoption of MDC-T by Dr Khupe was 'mischievous'

by Staff reporter | 19 June 2018 | 134 Views

Police ban dangerous weapons

by Staff reporter | 19 June 2018 | 94 Views

'Call me Zodwa Wabantwana'

by Staff reporter | 19 June 2018 | 156 Views

Chamisa can't withdraw Alliance candidates says Welshman Ncube

by Staff reporter | 19 June 2018 | 137 Views

Mnangagwa heads to Mashonaland Central

by Staff reporter | 19 June 2018 | 97 Views

No load shedding, says Zesa

by Staff reporter | 19 June 2018 | 86 Views

Year-on-year inflation remains constant at 2.71%

by Staff reporter | 19 June 2018 | 85 Views

Zec says polls can't be stopped

by Staff reporter | 19 June 2018 | 75 Views

Zec to unveil ballot printing company

by Staff reporter | 19 June 2018 | 95 Views

Woman kills, dumps newborn

by Staff reporter | 19 June 2018 | 98 Views

Chamisa swallows Dabengwa

by Staff reporter | 19 June 2018 | 163 Views

12 years jail for church burglar

by Staff reporter | 19 June 2018 | 78 Views

Pregnancy storm after teens' incest

by Staff reporter | 19 June 2018 | 103 Views

FreeZim wins t-shirts wrangle with ZRP

by Staff reporter | 19 June 2018 | 65 Views

'Mugabe was told of missing diamonds'

by Staff reporter | 19 June 2018 | 86 Views

Calls for Kasukuwere's arrest

by Staff reporter | 19 June 2018 | 76 Views

Mujuru speaks on national healing

by Staff reporter | 19 June 2018 | 50 Views