These days you don’t see that many people queuing at banks anymore. It’s certainly not because the liquidity problem that we were having was successfully resolved by the government. It’s just that many people have simply moved on and learnt to live without going to the bank for cash. This is mainly due to the relative stability we have seen in the rate during the past six or so months.
According to economist Eddie Cross who is also a member of the Monetary Policy Committe: the Reserve Bank of Zimbabwe is going to be reviewing the withdrawal limit soon. He mentioned this in passing while talking about the higher denomination notes the RBZ is set to introduce “soon”. This makes sense. The RBZ cannot review the withdrawal limits upwards when we already have a cash shortage. They would at least need to increase the amount of money we have in circulation.
The other thing the RBZ should look at when they introduce these higher denomination notes is to increase the individual withdrawal limits so that one does not need to go to the bank regularly.
He didn’t specify what the new limits would be though. Currently, the withdrawal limit is set at a paltry $1 000.00 ZWL per week. That is about US$10-11 which is not enough in any country including ours. It only allows you to buy about a dozen loaves of bread. It’s no wonder people are not wasting their precious time and risk catching COVID just so they can get US$10. Instead, people have been relying on the increase in the supply of USD to trade among themselves. Those with USD trade it away so they can get ZWL to pay bills like internet, telephone and buy ZESA units. Those with ZWL get to buy groceries at good rates so everyone wins.