Zimbabwe’s Reserve Bank Governor, John Mangudya, has urged shop owners and other business merchants to deposit money received from sales of goods from customers, into the formal banking institutions, so as to ensure enough cash is circulating in the country.
“Our prayer is that the shops should also bank their money so that money can circulate within the economy as opposed to being a one-way traffic,” stressed Mangudya, referring to accusations against some shop owners for keeping money so as to raise demand.
“We want to ensure that as Zimbabweans, we want to abide by what is required of money to circulate within the economy as opposed to hoarding it.”
The much awaited local currency, in denominations of $2 notes and coins, and a $5 note, hit most of the country’s commercial banks money, with the public expected to start accessing the notes immediately.
Mangudya said the newly issued money – totaling $1 billion - will be dispersed over a period of six months.
“The funds that are being withdrawn ... it’s starting with a $2 coin, $2 bank notes and the $5 of bond notes,” said Mangudya.
Asked if the influx of the new notes will alleviate the cash crisis in the country, Mangudya said that is the expectation.
“Definitely it will go a long way in easing cash shortages.