The daily individual limit of $5 000 for mobile money transactions recently imposed by the Reserve Bank of Zimbabwe (RBZ), will not affect business operations but only about 200 people who were abusing the system by using the platforms to buy foreign currency, thus fuelling black market foreign currency exchange rates.
This was said by Eddie Cross, a member of the Monetary Policy Committee. Cross revealed that the daily limit can be revealed once the situation settles down. He said:
In the past 12 months, EcoCash handled 1 938 billion transactions worth $225 billion dollars — an average transaction of $116. This means that the limit of $5 000 should cover the great majority of transactions.
Once the situation settles down, this limit can be reviewed, but the authorities had to limit the capacity of the system to transact in buying foreign exchange.
This they were doing through their agents funded by cash transferred to them by their bulk payers system.
This affected only 200 or so clients and was being abused. While the measures taken will affect their agents, their clients should not be disadvantaged to any extent.
On Wednesday, EcoCash, the dominant mobile money platform, announced that it was implementing the daily limit of $5 000 imposed by the central bank.