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Reserve Bank of Zimbabwe

Business Reporter

The value of transactions processed through the National Payment System increased 6 percent to $6,48 billion in May from $6,13 billion registered in April. According to the Reserve Bank of Zimbabwe monthly report for May, the value of cash transactions increased 3 percent to $729,25 million from $703,28 million in part due to the panic withdrawals seen after the announcement of policy measures to ease the cash shortages.Zimbabwe is currently going through a cash crisis which has seen banks lowering customer withdrawal limits. The shortage of US dollars cash in the country is attributable to a number of factors that include the depletion of bank nostro balances and the dysfunctionaliity of the multi-currency system as the country moved to predominantly dollar transactions.

However, people have increasingly turned towards electronic transactions and plastic money to get round the challenges.

The RBZ report says that transactions processed through the Real Time Gross Settlement system increased 8,6 percent to $3,86 billion in May from $3,56 billion in April. Similarly the volume of transactions registered a 23 percent to 199 256 from 161 725 the previous month.

The total value of mobile and internet based transactions registered a 12 percent increase to $479,93 million.

Recently Barclays Bank of Zimbabwe managing director George Guvamatanga opined that with the increase in the use of plastic money, the country can do well with this solution than with the introduction of bond notes.

“Considering that plastic money usage has grown over four times and is continuing to grow and the amount of bond notes to be introduced and also considering people don’t like them. . . given these sentiments, if you were to ask me, I would take a percentage of the $200 million and make it easier for people to transact in plastic money.”

“Don’t misquote me on my position I’m not saying I’m against bond notes or I’m for them. I’m simply giving facts,” he said.

Mr Guvamatanga said the POS machines should be made much more accessible, cheaper and easy for people to transact.

However, the RBZ says that bond notes will be introduced as an export incentive to stem the externalisation of the US dollars.

Card-based transactions were recorded at $418 million in May down from $427,7 million but this was before the banking sector reduced charges for point of sale transactions.

Annual money supply growth was lower at 12,5 percent in May compared to 12,8 percent the previous month. On a monthly basis broad money supply grew 0,9 percent to $5,05 billion.

“This reflected annual increases of 30 percent and 10,2 percent in demand and savings deposits, respectively,” RBZ said.