‘RBZ move needs supporting measures’

Michael Magoronga Midlands Correspondent
The recent move by Reserve Bank of Zimbabwe to ban cash in, cash-out and cash-back transactions will require supporting measures to be effective, economist Eddie Cross has said.

The Central Bank on Monday banned all cash-in, cash-out and cash-back transactions which it said had become the source of price instability as traders where charging exorbitant percentages to make a transaction.

Mr Cross said while the move was in the right direction, it was coming at a time when there was not enough money in circulation and if not carefully monitored, it risks presenting more challenges.

“The authorities should quickly come up with complimentary measures that support the recent move,” he said.

He said there was need for the RBZ to monitor and regularise cash printing so that there is more money in the market.

“The amount of cash in the market does not meet the demand. RBZ has to ensure that there is enough money in the market by making sure there is regulated and controlled printing of money so that we fill in the gap that is left by the recent move,” said the former legislator.

Mr Cross said the introduction of a new currency will see an improvement in the situation in the country.

“We are hopeful that when we get a new currency sometime in November as promised by Government things will then stabilise,” he said.