Desperate Zimbabwe wants to adopt South African Rand
Zimbabwe should adopt the South African rand as its official currency on an interim basis as a way of stabilising the economy, deputy Finance Minister Terrence Mukupe has said. This also comes as the country’s liquidity position remains tight and there have been desperate calls by various stakeholders such as industrial bodies for a solution to the chronic issue or problem, which President Emmerson Mnangagwa has tried to cure by implementing a number of policies including attracting foreign investments, writes the Financial Gazette.
According to Zimbabwe Independent, the financial situation of the country is quite bleak. The government, as well as the citizens and banks, face a desperate cash shortage resulting in lack of money in most ATMs around the country. Most banks have resorted to giving money over the counter, resulting in long, winding queues at most financial institutions.
ATMs are now only used occasionally when banks look to reduce the pressure in banking halls which has resulted in most machines gathering dust at great cost to financial institutions.
The use of ATMs has also been affected by the introduction of bond coins by the Reserve Bank of Zimbabwe which cannot be dispensed through ATMs. Some banks are now giving depositors cash in coin denominations of US$1, 50c, 25c and even as little as 10c. A senior banking official pointed out that while there has been a significant increase in point-of-sale transactions there has been a dramatic decline in ATM cash transactions.