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'Cash-starved' Retailers Welcome $50 Banknote

'Cash-starved' Retailers Welcome $50 Banknote

Retailers have welcomed the introduction of the $50 banknote by the Reserve Bank of Zimbabwe (RBZ), saying, however, there is a need to ensure that the new notes will not end up in the hand of illegal forex dealers.

Confederation of Zimbabwe Retailers (CZR) president Denford Mutashu said it is mind-blogging that nothing is being done against illegal forex traders. He said:

It’s a welcome development and all we need is to work harder to get cash to circulate within formal channels otherwise illegal foreign currency dealers celebrate more than formal business who are failing to access cash anyway.

The bulk of the cash is being intercepted by illegal money changers who have increased in numbers and applying various tactics to evade arrest. As a country, I don’t think we do not have the capacity to deal with this vice.

Our porous banking institutions have not helped matters as these cash shenanigans have continued unabated.

It boggles the mind that illegal forex traders are using many accounts held with different banks without being noticed.

The same way we dealt with mobile money transfers should be applied on these bulk wire transfers funding illegal forex trading.

On Tuesday, the RBZ introduced $50 notes, which will come into circulation with effect from today.

Treasury has given legal effect to the issuance of the new notes by promulgating Statutory Instrument 196 of 2021.

According to the apex bank, $360 million worth of the new $50 notes will be issued.

More: The Herald

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