Banks, retailers coin impasse rages on

estimated R8 million in coins sitting in financial institutions.
Banks had sourced the coins from neighbouring South Africa to alleviate their shortage.
But retailers, despite facing a severe shortage of coins for change, have refused to get the money offered by banks, citing unfavourable exchange rates.
Banks accuse retail outlets of demanding what they consider an unviable exchange of US$1 for R1O instead of the prevailing rate of US$1 to R7,1130.
Bankers Association of Zimbabwe president Mr John Mushayavanhu said banks were contemplating repatriating the coins back to South Africa because of the impasse with retailers.
Banks can not afford to sit on capital which was not generating profit, he said. “There are no takers of this money. As banks we need to convert it into value,” Mr Mushayavanhu said.
“We are going to repatriate the money to South Africa. That repatriation costs money.”
Meetings facilitated by Government between banks and retailers had failed to break the deadlock.
“We have had several meetings chaired by the Industry and Commerce Ministry over the issue. The solution is with retailers,” said Mr Mushayavanhu.
But Retailers Association of Zimbabwe president Mr Themba Ndebele said the two parties had agreed to exchange the coins using the ruling exchange rate, and accused banks of not being able to meet demand.
“Following the meetings we held with banks chaired by the Ministry of Industry, a position was actually taken that banks would supply the market with coins. We actually want the coins,” he said.
He said it was unfair for retailers to be blamed for fueling the crisis as there were other players who could also buy the coins from banks.
“The issue is not about retailers only, what about commuter operators?” Mr Ndebele asked.
Industry and Commerce Secretary Ms Abigail Shonhiwa said Government had facilitated dialogue between banks and retailers to protect consumers.
Ms Shonhiwa said consumers continued to ‘subsidise retailers each time change could not be given. – New Ziana.