Uptake of other currencies low – RBZ
small scale miners are rejecting rand
THE Reserve Bank of Zimbabwe (RBZ) says uptake of other currencies in Zimbabwe’s multi-currency regime remains low despite a Central Bank directive that banks, retailers and the general economy start trading in all currencies in the basket effective 1 July 2016.
As part of addressing cash shortages and pressure on the United States Dollar, RBZ announced that Banks will start issuing the South African Rand and seven other currencies on July 1, 2016 while all Real
Time Gross Settlements are being paid using the regime of destination country. The currencies are the Chinese yuan, euro, British pound, Botswana pula, Australian dollar, Indian rupee and Japanese yen.
RBZ deputy Governor KhupukileMlambo said in an interview, the Central Bank is currently carrying out a survey on the uptake but initial findings show that there is no significant change.
“We are carrying out a survey to determine the uptake which will be concluded by next week, but initial stages shows that there is no improvement on the uptake of other currencies, but we have witnessed an increase in the usage of plastic money,” he said.
The RBZ is targeting all electronic monetary transactions of 80 percent in the next five years as it moves to promote a cashless society.
In 2015, the value of mobile and internet-based transactions rose by 32 percent to US$1, 6 billion from US$1, 2 billion the previous year, according to central bank’s statistics.
This comes as Small scale producers of gold are rejecting the South African Rand due to the wide differences in rates between Fidelity Printers and Refinery and other businesses. Currently gold has been trading at $41 dollars per gram or R592,59. The situation has been worsened by the fact that most businesses in Zimbabwe are still rejecting the rand in favour of the dollar.
Commenting on the Banking sector, non- performing loans, Mlambo said the NPL ratio is now averaging 10% and the sector remains safe and sound due to various measures being instituted by the Central Bank in collaboration with Government. FinX
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