Cash crunch hits Zim banks

Lazarus Sauti

Depositors from various banks in the country for the past days failed to access cash from Automated Teller Machines (ATMs) due to a serious cash crisis.

The biting catastrophe started late last year up to date.

An impulsive survey by Inside Southern Africa showed that most banks in Harare, Marondera, Rusape and Mutare were not dispensing cash from Automated Teller Machines.

Some banks have even suspended interconnectivity through ZimSwitch – an electronic payment platform for local banks, at their ATMs.

Gideon Madzikatidze, a customer at CBZ Kwame Nkrumah, failed to access his cash despite spending much of his time at the bank.

“I was here yesterday evening and I failed to access my money from the ATM.

“The story is still the same today,” he said, adding that “bank officials were waiting for customers deposits to then give cash to customers.”

Some banks have limited withdrawal amounts from US$3 000 to US$800 for both individuals as well as companies since January this year.

“I was told by bank officials to wait for customer deposits and I only managed to get US$800.

“The officials also said the bank has run out of higher denominations such as US$50 as well as US$100 and could only give me cash in US$20 denominations,” said a customer at one of the country’s leading banks.

In an interview with a local newspaper, a top official from Barclays Bank Zimbabwe, George Guvamatanga, said the cash calamity was a result of logistical hitches.

“We had planned on our normal demand, but we ended up with a higher demand. When we realised that there was need for more money, the turnaround by the time you place your order and the time you put money in ATMs is five working days,” he said.

Guvamatanga also said: “It is just a communication and planning issue. We need to communicate better especially with major salary payers in the market.”

Reserve Bank of Zimbabwe Governor Dr John Mangudya blamed financial institutions for the shortage of cash in banks, citing that the facilities had under-estimated the needs of clients.

“It is not a problem of the availability of cash. It’s more about distribution. Banks underestimated the demand for cash.

“Many shops have point-of-sales that facilitate the use of plastic money, but most Zimbabweans want to do transactions with cash. People should use plastic money,” he told a privately-owned newspaper.

‘Plastic money’, credit cards, internet banking and mobile banking were smoothly transacting despite the cash crisis.

Economist Tinashe Sibanda said banks were struggling because the country does not have its own currency.

“Remember Zimbabwe dumped its currency in favour of a multiple currency in 2009.

“This means local banks have to import notes from the United States and South Africa since most Zimbabweans trade in U.S. dollar and rand currency,” he said.  


Sibanda also said companies in the country were underperforming and this not only affected their exports, but banks too as they had no funds in their foreign accounts. 

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