The recent cash dilemma which hit local banks in the past few weeks has raised alarms on the liquidity position of the country. Huge queues at banking halls were the orders of the day until the Reserve Bank of Zimbabwe assured depositors and all account holders that it was just a glitch that went to be resolved within a few days.
The RBZ however has now embarked on a drive to turn Zimbabwe into a cashless economy, a move that will definitely counter cash shortages in the future. With digitization taking over all the industries, this seem to be the wisest move by the mother governing body to impress the plastic money technology which is even anchoring other liquid economies in most first world countries.
Below is the official communication relayed to ZBC by the Reserve Bank of Zimbabwe:
|The Reserve Bank of Zimbabwe is confident of increasing plastic money usage to 80 percent from the current 20 percent in the next five years as the fiscal authorities push for a cashless economy.
The country’s apex bank says as part of the medium-to-long term strategy, the country’s fiscal authorities have prioritised the usage of plastic money.
According to the RBZ, banks should play a critical role in promoting the usage of plastic money in line with the international best practices.
RBZ Governor Dr John Mangudya says there is urgent need for a departure from the current situation were cash transactions are accounting for 80 percent of transactions.
According to the fiscal authorities, apart from promoting the usage of plastic money, there is need for the country to move away from the current consumptive economy to a more productive economy.
As part of the measures to promote the growth of the export sector, treasury has come up with tax incentive to cushion exporters.
The battle for relevance continues…..