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Economy

Restore market confidence by ensuring efficient circulation of cash through the banking system.

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Payment Challenge for Cotton Farmers

Herald

    

June 25, 2020

Most cotton farmers who have delivered their commodity are yet to be paid almost three weeks after the Government announced the producer price due to unavailability of cash and restrictions imposed on mobile money transfers by the Reserve Bank of Zimbabwe. The Government set the cotton producer price at $43,94 (US$1,75) per kilogramme for this season. The producer price is a combination of US dollars, Zimbabwean dollar cash and electronic money.

Farmers will be paid US$10 per each bale weighing 200kg of deliveries, 38 percent in Zimbabwean dollars cash and the balance transferred electronically to farmers’ mobile money wallet accounts. It has since emerged that cotton merchants are failing to effect payments due to cash shortages (both USD and Zimbabwean dollar) as well as limits on business the mobile agents line can transact.

Previous Updates

RBZ misses cash target

Herald

    

Jan. 24, 2020

The Reserve Bank of Zimbabwe (RBZ) said yesterday about $1,1 billion in cash was in circulation  at the end of December 2019, about $2 billion short of the target it had set to have in the market by then. Zimbabweans are still battling cash shortages even after the  re-introduction of a local currency last year. Hopes were high that cash shortages, which have persisted for up to  five years, would be a thing of the past with the country having its  own currency.

The Reserve Bank of Zimbabwe separated RTGS and actual USD (Nostro account) to inspire investor confidence.

Herald

    

Oct. 1, 2018

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has ordered banks to separate Nostro foreign currency accounts (FCAs) from the real-time gross settlement (RTGS) deposits. This effectively means the Nostro FCA will be for actual United States Dollars while the RTGS accounts will be for electronic money and bond notes. According to the governor, the Nostro foreign currency accounts will be used to stamp out the leakages of foreign currency leakages onto the black market.

    

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