The Reserve Bank of Zimbabwe (RBZ) is working on amending the Bank Use Promotion Act and other anti-money laundering laws so that companies and individuals will be allowed to keep a maximum of US$10 000. However, any amount over this, the companies and individuals would be required to bank it. Companies will still be legally obligated to deposit their cash takings at the end of the business day.
Speaking to the Sunday Mail, RBZ governor John Mangudya said:
At the moment, there is no law regarding how much an individual can have in their possession, but that is what we are proposing. This is in line with best international practices around the globe.
Once that money is brought back, we are confident cash will improve. We are saying individuals should not have money exceeding US$10 000 in their possession at any given time. We want people, especially businesspeople, to develop a culture of banking, which will help with cash circulation.
We want to conduct a simple and transparent exercise so that members of the public will respond positively to our call. We are going to distribute forms to all banks across the country starting this week, which individuals or companies will use during the exercise.
The forms will help individuals and companies that would want to partake in the exercise, showing them how to go about the whole exercise. We want to instil confidence (in the market) so that everyone wishes to partake in the exercise.
More: Sunday Mail