Cash hoarders, barons to be given ultimatum to bank cash or face arrest

In an interview with The Sunday Mail last week, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya said that the Central Bank is working on an amnesty deal similar to the one issued by President Emmerson Mnangagwa last week. RBZ will allow individuals and companies hoarding cash inside Zimbabwe to bank the funds without prosecution.

This is meant to improve availability of cash at banks. RBZ will also introduce other measures such as increasing the importation of cash using part of the Nostro Stabilisation Facility proceeds. Said Mangudya:

Confidence-building is critical as it gives impetus to the efficient circulation of money within the economy, and is, therefore, a prerequisite to improve the availability of cash at banks. Secondly, the amnesty granted by the President in respect of illegally-expatriated cash and assets is expected to increase cash availability once the funds start to flow into the economy.

Thirdly, Government, through the Reserve Bank, is working on a similar amnesty to deal with cases of in-country hoarding of cash at homes. Hoarding of cash is counter-productive as it reduces the circulation of money. Hoarding has a cash-hemorrhaging effect on the economy. Fourthly, the Reserve Bank shall be increasing the importation of cash using part of the Nostro Stabilisation Facility proceeds. Cash imports currently stand at around US$50 million per month to cater for diaspora remittances, small-scale gold producers and the banking public, and $15 million bond notes to fund the Export Incentive Scheme.

More: Sunday Mail