‘Withdrawals shrink as banks hold on to deposits’

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya says withdrawals are now averaging $5,5 million a day, showing that more depositors will find it harder to access money from banks.

BY TATIRA ZWINOIRA

The $5,5m worth of withdrawals is from the 19 banking institutions in the country that include commercial banks, building societies and savings bank.

Considering that 30% of the population are banked, these numbers are paltry, as evidenced by the fact that many depositors still queue for cash in the central business district.

But Mangudya claimed, before the Parliamentary Portfolio Committee on Finance on Monday, that queues at banks were going down, with some of the committee members firing back that the central bank boss was “not living in reality”.

“When an economy is receiving deposits of $146 million and withdrawals of $140m these are not small figures by any international standards. Right now, our current deposits per day stand at around $6m per day for the whole banking sector against withdrawals of around $5,5m, so we can say our deposits and withdrawals are between $5m and $6m on a daily basis,” he said.

Economists say depositors still need cash for menial transactions, where plastic money systems are not operational, such as transport or buying from vendors.

Apart from this, many institutions still demand cash from consumers, increasing demand.

RBZ statistics showed that last month, $138m worth of deposits were received by the banking sector against withdrawals of $135m and January had $146m worth of deposits received against withdrawals of $140m.

The trend has pointed to more banks holding on to cash and disbursing fewer dollars than what they would have received, despite most institutions stating a prerequisite to withdraw cash dependent on deposits.

Mangudya said the queues at the banks were “a reflection that there is more money that we are putting in the economy, more than the foreign currency at that particular time”.


“But, if you go there (banks) now today, before payday, there are no more queues, but queues resurface, so they recur,” he said.

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13 Comments

  1. I have given up on this Mangudya chap.

  2. Sekuru Chaminuka

    Comment…Mr governor is out of touch. Even Mugabe is demanding that he be paid in cash because if credited to one’s account, its very difficult to access it.

  3. Dr Mangudya is as clueless as a headless chicken

  4. Gidza Nyikayaramba

    How did we end up with a governor who has no clue on how to solve problems?
    Even Gono was much better than this joker!

  5. He is far from the truth. People are discouraged by the maximum amount given and the coins. E.g. NMB sometimes gives $60 in 10 cents and 4 cents coins. This money is rejected in the market.

  6. Mugabe was just a victim of circumstances,….. bad apple, ,the fruits still taste the same, makudo ndemamwewo ,Nhai Mwariwe tinzwire nyasha tirege kuparara.It z the system ……Gen Papa Tongo once said!!!

  7. Aaaaa kudoti MUGABE ,Mugabe,Mugabe …,ndiye wadii, moti ndiye akuraya,ndiye akaja zvokuba ,ko imi maura acho makarasirepi? I DONT BUY THAT CHIPI Stafu of yourz!!! Kuhondo mese, kutonga mese makazosiyana naye pakuuraya nekuba here? Muranda haatongerwe mhosva yake asipo ,mupeiwo nguwa ataure chakamufoirisa!!!

  8. Who is better Mangudya or Gono the guys who used to walk around with lip ice in his pocket so that his lips would always look fresh in public, lets pick or choice, Mangudya=Bond and Gono=Zim Dollar Trillions

  9. Mangudya – those million dollar deposits, are they in the form of hard cash or “plastic” money or air money. I bet you a million dollar, they are plastic mone. Do not lie to the nation like this mhani!!

  10. mangudya like his boss ED who wants to sleep in the queues with the desperate bank account holders in solidarity with cash shortages instead of solving the cash crisis are both not correct upstairs. i had promised myself that ED has my vote but now i’ve changed my mind coz these men cant take us anywhere and if they are to do so, i guess it will be to the graves

  11. There is also a small Parastatal called National Arts Council of Zimbabwe were one cruel guy called Nicholas Moyo a brother to the Cabals specialist Jonathan Moyo is tormenting innocent souls by running the institution as a personal tuck-shop.Workers are being vindicated and huge sponsorship from Delta is being looted and no one cannot challenge him because he is closely linked to the likes of Rev Damasane and other top GVT offices. Currently its Director is on leave and he is sitting on three positions and working on plan to recruit her girlfriends, close friend and relatives in various positions to be filled an time soon which were illegally advertised through whatsapp platform

  12. I have realized that this guy is clueless. He doesnt know what happens arround him. The figures he gives is indicative of the fact than any deposits made go directly to the withdrawals for the black market. These figures dont reflect withdrawals for ordinary people who are only allowed $20 per day. Again if he sees the declining queues, I cant even talk about that. If we have such a clueless individual as the RBZ governor, what can one expect from Zimbabwe? On this front, ED has failed dismally. No hope for reviving our economy. It pains listening to this guy trying to answer questions. He cant even manage a tuckshop.

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