Govt takes measures to address cash crisis

The country has been faced with liquidity challenges that have inconvenienced the transacting business community with some companies reportedly failing to pay their workers on time.
Permanent secretary in the Ministry of Finance, Mr Willard Manungo, told Business Chronicle yesterday that efforts were being made to improve liquidity in the economy.
“As Government, we are trying to ensure that we support improved liquidity system in the economy. The measures include staggering Government employees’ pay dates so that we increase the period for the mobilisation of resources as well as bank transfers,” he said.
In the past few days, clients with leading financial institutions in Bulawayo expressed concern over the inconvenience caused by banks as a result of recent failure to process payments made through the Real Time Gross Settlement facility.
Mr Manungo said Government has also instituted a mechanism for processing high value and high volume transactions in order to curb the cash crisis in the banking industry.
He said to facilitate smooth payment transactions all financial institutions had been called upon to moderate cash payments to a maximum of $10 000.
Presenting his monetary policy statement last month, Reserve Bank Governor Dr Gideon Gono said transactions for any amount above $10 000 to $20 000 would now require 24 hours notice while any transaction above $20 000 to $30 000 needs a 48 hour-notice and any amount between $40 000 and $50 000 require 96 hours and five days notice for amounts above $50 000.
“Other measures that we are looking forward to assisting in addressing liquidity challenges include the collaboration of financial sector regulators such as the central bank and pension funds,” he said.