RBZ Disappoints As They Slightly Increases Mobile Money Limits

The Reserve  Bank Of Zimbabwe has continued to maintain a false positive, increasing grip on money movements which has already been eroded by inflation, hence rendering the mobile payments ineffective and pointless.

The bank has been desperately trying to cage down inflation with multiple efforts to point a completely different picture on paper against activity on the ground.

The insincerity however was worsened by Mangudya’s meager mobile money limits adjustments which saw him increase the transaction limits by only $5 000 rtgs , a figure less than $10 usd in a highly inflationary environment.  \

Mangudya increased weekly mobile banking transaction limits for person-to-business to $25 000, from $20 000 previously.

“(The limit on mobile banking transactions as follows: (a) person to business from $20 000 to $25 000 per transaction with a maximum limit of $100 000 per week; and (b) person to person from $5 000 to $10 000 per transaction with a limit of $70 000 per week,” Mangudya said.

His measures included scrapping US$50 facility that was being accessed through bureaux de change to only a few sections of the society.

The RBZ chief said the facility had been abused.

The US$50 facility, which was announced last year, will be available only to vulnerable members of society, such as pensioners, senior citizens, people living with disabilities and those requiring foreign currency for medical purposes.

“The bank is refining the US$50 facility to assist members of the public to access foreign currency for small domestic purchases and payments at the official exchange rate through bureaux de change, with immediate effect, to limit it to the vulnerable members of the society,” Mangudya said.

Zimbabweans who settle their bills in US dollars mostly earn in local currency.

But the Zimbabwe dollar has depreciated significantly in the past year.

In the past week, it has been trading to US$1:$118 from US$1: $116 previously.

It has also failed to hold its ground on the black market, where it has tumbled to US$1: $240, compared to US$1:$120 at the beginning of last year.

These serious shifts must have reflected in his monetary policy but he failed to make any adjustments that speak to these major monetary movements.