RBZ increases withdrawal limit to ZWL2k, to introduce ZWL 50 note

By Davison Vandira

The Reserve Bank of Zimbabwe has come up with several measures to maintain the price and financial stability prevailing in the country.
The measures were announced in the Monetary Policy Statement released by the central bank this Thursday.

Among the measures announced is an increase in the Bank policy rate for overnight accommodation from the current 35 percent to 40 percent per annum and the medium-term lending rate for the productive sector from 25 to 30 percent per year.

The Central bank also increased cash withdrawal limits to 2 000 Zimbabwe dollars for individuals and maintained the current limits on mobile banking transactions at 5 000 Zimbabwe dollars per transaction, which has been aggregated to 35 000 Zimbabwe dollars per week.

According to the RBZ statement, the measure will enable the transacting public to continue conducting small transactions using cash, while large transactions are conducted through electronic banking.

While the Central Bank will soon introduce a 50 dollar banknote to augment the current stock of banknotes in circulation, the RBZ said the new banknotes will not in any way cause inflation since they do not increase money supply.

Other measures include the increase of statutory reserves from 2.5 to 5 percent for demand and/or call deposits.

Economic experts have since welcomed the measures in view of the need to increase private sector participation in the economy, maintaining the prevailing stability and turnaround strategies in the wake of the Covid-19 pandemic.

The Monetary Policy Statement is coming in to support the fiscal policy in spearheading Zimbabwe’s economic aspirations.

The post RBZ increases withdrawal limit to ZWL2k, to introduce ZWL 50 note appeared first on ZBC NEWS.

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