Cash crisis to continue

CASH shortages are set to continue unabated as the Reserve Bank of Zimbabwe’s (RBZ) monthly economic review for April recorded that 2,51% or $153,53 million of broad money supply was the currency in circulation, against optimal levels of 15%.


Currency in circulation is the currency that is physically used to conduct transactions between consumers and businesses rather than stored in banks, financial institutions or the central bank.

In the RBZ’s April monthly economic review, on a month-on-month basis, broad money supply grew by 4,03% to $6 116,8 million from $5 879,9 million in March 2017.

“The expansion of money supply, in part, reflects injection of new money into the banking system through tobacco sales, for which $206,4 million worth of tobacco had been sold by end of April 2017,” RBZ said.

“The composition of broad money during the month of April was as follows: transferable or transitory deposits 71,43%, time deposits 25,02%, currency in circulation 2,51% and negotiable certificates of deposits 1,03%.”

RBZ said the broad money supply over the year to April was up 22,67% from last year’s comparative period’s $4 986,3 million.

The April currency in circulation figure is significantly lower than the preferred level of 15%, which international best practice states should be the amount of cash in circulation against total deposits.

For Zimbabwe, the currency in circulation mainly refers to United States dollars, bond notes and coins, as these are the predominant currencies used in the country.

Analysts say the April figure shows that the state of the cash shortages has been seriously played down.

Financial expert, Persistence Gwanyanya told NewsDay yesterday that the low RBZ figures spoke to two things; supply and demand.

“The supply factors being that the generation of cash every day is dwindling and we are losing cash from the formal system into the informal system and also out of the country,” he said.

“This is occasioned by the consumptive and import depended nature of the country.

“Obviously, the issues of externalisation have also conspired to worsen the situation. We are losing money we are not generating money as a country.”

Early last week, central bank governor, John Mangudya said they had put about $160 million worth of bond notes on the market.


  1. This means the currency in circulation are bond notes only. The governor ignored advice that bond notes will chase away good money, hezvo, the only money circulating in the economy are those bond newspapers, we are slowly going back to 2008, Zimbabweans will be beaten for the second time, the first time by Gono and now Mangudya. These two governors have aided theft of public funds by government.

    1. Bond notes are a fraud. Imagine printing your own tissue paper and saying it’s at par with the USD without any corresponding manufacturing, consumer spending, etc? Zanu is led by zvituta par excellence. And we urge them on like $2 hookers. Imagine all the fools thronginging these stadia to hear aka kaharahwa ke skin inenge biltong speak?

  2. Mangudya pledged that if the bond notes approach fails he will resign. What is he still doing?
    We cry of externalisation of cash without coming clean on the culprits are. R G Mugabe and maChina are people guilt of externalisation

  3. So it means bond notes and goats are the currency in circulation

  4. Muchaona ndondo ne fake money yenyu


  6. You don’t need to be a “financial expert” to recognise the obvious.
    I like the use of “consumptive”, though. Consumption is an old term for tuberculosis. A breathing disease, when the lungs fail to work properly.
    No proper breathing rhythm, you run of air, and you die.

  7. mutumwa mawere

    hapana chisingapere, muitiro wakuti munyika yeZimbabwe mmmmmm hapana munhu achazvigona izvi zvakutongoda mwari mbune nekuti vanhu vakuti tungamira vacho vakaoma moyo, muitiro ukuita nevanhu ava vakuita kunge vasiri vanhu vatema, havana kana moyo wakanaka, tingataure hedu asi chero vanhu ivava vachiri kungotonga chete hapana chinobuda

    mwari dai vatiwanira nyasha tatambura isu vana veZimbabwe

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