The Reserve Bank of Zimbabwe (RBZ) has revealed that foreign currency deposits declined during the last quarter of 2019.
This revealed in the central bank’s monthly economic reports which observed that foreign currency deposits which stood at 42% in September 2019 went down to 39% in the month of October 2019. State the reports:
The deposits further declined from 36 % recorded in November 2019 to 34% as of December 31 2019.
Analysts claim that the decline depicts the erosion of confidence in the banking systems by the country’s public who now prefer keeping their money at home after years of policy inconsistencies.
Zimbabwe ditched the multicurrency system in June last year and reintroduced the Zimbabwe dollar which was, through Statutory Instrument 142 of 2019, declared the sole legal tender.
The governor of the RBZ, John Mangudya says that the decline in deposits falls within the country’s de-dollarisation framework.
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