The Reserve Bank of Zimbabwe has invoked a suppression of money laundering law to force businesses to bank their daily takings as the cash crisis in the country worsens.
Zimbabweans are in a stake of panic following the announcement by the central bank that it will introduce bond notes in October to ease the cash crisis.
Most Zimbabweans view the move as a way of trying to sneak the Zimbabwe dollar through the back door, and fear that this could lead to hyperinflation that gripped the country in 2007-2008 when the country clocked the world’s second highest inflation in the world.
Central Bank chief John Mangudya told The Sunday Mail: “The problem we have today is caused by non-circulation of money. Therefore, with immediate effect, we have put in place a team that will make sure all businesses are compelled to bank money.
“This includes any business, anyone who is into selling products, both informal and formal businesses. We are saying money should be banked. We are importing between US$10 million and US$15 million every week, but the problem is there is a short circuit in the circulation system.
“We are, therefore, taking the bull by the horns, and invoking the Bank Use Promotion and Suppression of Money Laundering Act which compels businesses to bank money.
“It is an offence not to bank money, and those caught on the wrong side (of the law) risk losing their licences or incurring huge penalties.”
Related stories:
Ecocash to be hit by cash crisis
UK says bond notes could be damaging to confidence in Zimbabwe economy
Multi-currency system is dead says RBZ
Zimbabwean company says “bond notes” are adding to uncertainty
Chinamasa says Zimbabwe will not be a “fishing pond” for US dollars
Zimbabwe hires German firm to print bond notes
Zimbabwe’s bumpy, costly road to a cashless future
The government’s hidden hand in Zimbabwe’s cash crisis
Chinotimba says give people bond coins if they do not like bond notes
Chinamasa tells Parliament that bond notes are above board
Zimbabwe says it needs bond notes because “we are feeding looters”
Zimbabwe scraps plans to convert export earnings into rand, euro
Tsvangirai calls emergency national executive meeting Thursday to decide way forward on bond notes
It’s a stimulus package- Mangudya says
Tsvangirai to convene his cabinet tomorrow to discuss proposed bond notes
Bond notes -a legal perspective
Zimbabwe stems illicit outflows
Cash shortages – the real causes and the wrong diagnosis
New bond notes-key questions answered
Mangudya full statement on the introduction of bond notes
Highlights of RBZ intervention on cash shortages
MDC says Mugabe is bringing back Zimbabwe dollar through the back door
Zimbabwe to introduce bond notes as cash shortages bite
(276 VIEWS)
This post was last modified on June 5, 2016 2:50 pm
Payments in Zimbabwe’s latest currency, the Zimbabwe Gold, now account for 40% of transactions, up…
Zimbabwe should de-dollarise otherwise its new currency the Zimbabwe Gold will go the way other…
Zimbabwe has come up with a de-dollarisation roadmap which will soon be presented by Finance…
Former Citizens Coalition for Change leader Nelson Chamisa says it is not easy to lead…
The Zimbabwe Gold (ZiG) has brought some stability into the market enabling some smoothness for…
Zimbabwe Finance Minister Mthuli Ncube presented his mid-year budget review on Thursday which, among other…