RBZ investigates banks over new currency

Dr John Panonetsa Mangudya

The Ministry of Information Publicity and Broadcasting Services has announced that government through the Reserve Bank of Zimbabwe is investigating allegations of abuse of newly released bank notes.

The Ministry comes after social media was marred with pictures of black market traders displaying hordes of the new notes and coins at their trading places.

The Ministry said cash was collected by banks using their CIT vehicles on Monday, all serial numbers were recorded in the register and the offending banks will be named and severe action taken.

Speaking to South Africa’s Independent online Tony Hawkins, a professor of business studies at the University of Zimbabwe, said on Monday the new notes would not solve the country’s economic problems.

“What it means is that we will probably have more cash around to feed the black market for currency,” he said.

In Zimbabwe cash is the preferred method of transacting business in an economy where unemployment is above 80% and the majority of citizens earn a living from trading in the informal sector.

The bond notes that were injected into the country in 2016 have since disappeared from the market leading to the introduction of the new currency which is currently trading at 1:1 with the rand.

Source – Byo24