Zimbabwe limits bank withdrawals amid 'cash squeeze'

The cash shortage in Zimbabwean as a result of the depreciation of the country’s currency is getting worse.

A lot of banks are running out of cash forcing the central bank to set stringent daily withdrawal limits for bank customers.

Governor of Zimbabwe’s Reserve Bank, John Mangudya told a press conference that: “The maximum cash allowed to be taken out of this country either in your bank or (in) person has been revised downwards from five thousand to one thousand U.S, to 1000 euro or twenty thousand rands.”

Zimbabwe takes drastic measures to deal with a serious cash shortage . It has imposed a $1000 US limit on daily bank withdrawals

— Paul Bakibinga (@PabloBach) May 5, 2016

The situation which started earlier this year has seen many financial institutions threatening not to deposit money in banks, further complicating the matter.

Others have however taken the decision to close their bank accounts altogether as they become frustrated with the current situation.

A bank customer said: “The banks do not pay enough cash, we have been waiting for close to 5 years now. The sums given out are limited to $400.”

“Henceforth I will keep my money at home because we have lost confidence in the banks,” another disappointed bank client said.

The Executive Board of the International Monetary Fund (IMF), on Tuesday cautioned that the economic difficulties in Zimbabwe would continue unless the country took some bold steps.

Agencies