Africa Economy Finance Government Zimbabwe

Zimbabwean banks use rand amid dollar drought

Zimbabwe’s cash crisis is so severe some banks are no longer supplying dollars and are dispensing South African currency, said the main opposition party, the Movement for Democratic Change (MDC).

Calling the crisis “debilitating”, the MDC said on Saturday that some banks had restricted cash withdrawals from ATMS and tellers. Cash shortages, a feature of Zimbabwe’s 2008 economic and political crisis, resurfaced at the beginning of March.

Significant job losses in 2015 and a slowdown in industrial activity have meant fewer people are using banks.

The Morgan Tsvangirai-led MDC said illegal money changers had resurfaced on the streets, charging stiff premiums for anyone wanting to buy US dollars.

“If this continues, shortages of goods will start appearing and queues might develop for fuel,” said the statement.

Zimbabwe abandoned its own currency in 2009 and now uses mainly the US dollar and the rand, although other currencies are also legal tender.

Source: BDLive

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