Cash transactions down by 8% due to cash shortages
The Reserve Bank of Zimbabwe (RBZ) has revealed that due to the acute shortage of US bank notes, the number of cash transactions is going down as people look for alternative means of payment, mainly plastic money. Between July and August 2016, cash transactions fell by 8% from $5,3 billion to $4,9 billion.
Cheque transactions also declined by 14% , while mobile money and online transactions increased from $709 million to $766 million an 8% increase.
An excerpt of the RBZ report reads:
On a month-on-month basis, credit to the private sector decreased by 0.02 percent, from $3, 4 billion in July to $3, 4 billion in August. Developments on private sector continued to reflect cautionary lending by banks, in an environment characterised by a slowdown in economic activity.