Fresh details coming from the High Court indicate that the case between Cassava Smartech Zimbabwe Limited, the owners and operators of Ecocash, and the Reserve Bank of Zimbabwe will be heard by heard before Justice Alphas Chitakunye on Friday.
Ecocash takes the fight to High Court
Cassava Smartech Zimbabwe Limited, the owners and operators of Ecocash Zimbabwe, filled an urgent application with the High Court on Tuesday after the Reserve Bank of Zimbabwe issued a National Payment Service Directive NPS 01/2019 that instructed all mobile money operators to cease cash-in and cashout transactions.
Cassava argued that the directive was unfair as it was collective punishment and would result in over 6 million users of Ecocash being unfairly punished for the crimes of a few. They also argued that the company would suffer substantial financial loss as a result of the government’s action which, they further pointed out, would result in major financial disruptions to the economy given the importance of Ecocash.
Cash shortages persist as those selling cash make a killing
The banning of cash-in and cashout was a populist measure that has predictably failed to end the shortages. Instead, it means only a few people are left selling cash on the streets as the RBZ has failed to print enough cash to meet people’s needs given the scrapping of the multicurrency system which put more pressure on the already scarce bond.
Some cash sellers are demanding 100% in exchange for cash. Which means that if you want $100 in cash you have to give these people $200.
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