RBZ Injects $120 Million New Notes & Coins Into The Economy

Reserve Bank of Zimbabwe (RBZ) deputy governor Kupukile Mlambo said the Central Bank has injected $120 million into the banking sector since November 11, this year.

The RBZ intends to increase the amount of cash in circulation to $2.8 billion, from $855 million before the introduction of new notes. Said Mlambo:

Despite our efforts of going cashless, we have realised that cash is still king and people want it in their pockets. Since 11 November, we have injected ZWL$120m into the banking system to deal with cash shortages.

We have also increased the ratio of cash to electronic money to reduce inflation and minimise the premiums on the parallel market. We need to inject between ZWL$1bn and ZWL$2bn in the next six months to reduce the gap between electronic money and physical cash.

Some banks have started to feeding money into ATMs, with the weekly cash withdrawal limit remaining at ZWL$300.

However, the withdrawal limit is considered too low due to rising inflation, with the current limit only enough to buy about 17 litres of diesel.

More: Business Times