Zimbabwe is in for another trouble, the beast bedeviling the Southern African country is definitely obdurate and bent on ensuring the nation’s economic status is lesser than nothing. Reports have it that the country is suffering another cash shortage with banks limiting clients to a maximum $500 cash withdrawal per day.
You’ll recall that Mugabe’s country experienced similar incident at the eve of its historic economic collapse in 2008. Then, the national currency – Zimbabwe dollar, consistently, and excessively nosedived against the US dollar.
But instead of taking positive workable actions to address the problem, the government kept printing Zimbabwe dollar notes of higher and higher denominations.
What happened next was historic. The Zimbabwe dollar eventually ran into trillions and was essentially useless in every sense of the word. Of course, you also know that the people abandoned the worthless dollar. The government was right behind the people in the abandonment. It adopted the US dollar and other currencies.
Now history is repeating. The country has run out of US dollar to such extent banks have to limit withdrawals. ATMs are steadily dishing out fewer dirty old notes, and there aren’t enough of them to withdraw from circulation and replace with new ones.
Pleading with Zimbabweans who’re pissed with having to cope with not being able to have the money they own, John Mangudya – the central bank governor – demanded of the people to limit their use of cash but to use more plastic money.
“As the central bank, our key function is to ensure financial stability in the economy and that people are able to get their money when they want it. We are aware of the situation and the high demand for cash because of salary and bonus payments.”
He disclosed that banks have been directed to increase cash imports, especially the US dollars. “However, importing cash is not an overnight event…It takes time but we are confident that the banks will be able to sufficiently meet the requirements of the banking public,” he reportedly told journalists in Harare.
He said the country is currently not in a position to print money, and advised local businesses that prefer keeping their daily sales in safes at home to bank their daily takings. It is “fueling cash shortage,” he added.
Meanwhile, it’s been speculated that people are packing US dollars into cases and sending them across the border to make money in Rands.