Zimbabwe's central bank plans to target people who keep money in cash boxes at banks, homes, and businesses. The Reserve Bank of Zimbabwe believes this practice keeps millions of dollars out of active use when the economy needs cash flowing freely. Banking officials worry that manufacturers supply products to street vendors but hide the cash they receive instead of putting it into banks.
The head of Zimbabwe's Financial Intelligence Unit, Oliver Chiperesa, said they're preparing rules for a major enforcement action. He explained that cash boxes should hold important papers rather than large amounts of money. Keeping big cash stashes violates Zimbabwe's laws against money laundering. His team recently opened new offices in Bulawayo to help protect the stability of Zimbabwe Gold, the national currency.
Bank Governor John Mushayavanhu first warned about this issue during his February money policy talk. He pointed out that storing cash privately hurts economic growth because it takes away money others could use. His team wants more people to trust banks with their savings. The central bank raised interest rates for savers to make bank accounts more attractive than private cash storage.
Banking officials feel happy about recent improvements in official banking use. They hope the stable value of Zimbabwe Gold will lead more businesses to accept it, even for buying fuel. The country earned removal from an international watchlist by improving how money moves through official channels. Officials remind citizens that keeping large amounts of cash creates unnecessary risks when bank savings earn interest and electronic payments work well.
The head of Zimbabwe's Financial Intelligence Unit, Oliver Chiperesa, said they're preparing rules for a major enforcement action. He explained that cash boxes should hold important papers rather than large amounts of money. Keeping big cash stashes violates Zimbabwe's laws against money laundering. His team recently opened new offices in Bulawayo to help protect the stability of Zimbabwe Gold, the national currency.
Bank Governor John Mushayavanhu first warned about this issue during his February money policy talk. He pointed out that storing cash privately hurts economic growth because it takes away money others could use. His team wants more people to trust banks with their savings. The central bank raised interest rates for savers to make bank accounts more attractive than private cash storage.
Banking officials feel happy about recent improvements in official banking use. They hope the stable value of Zimbabwe Gold will lead more businesses to accept it, even for buying fuel. The country earned removal from an international watchlist by improving how money moves through official channels. Officials remind citizens that keeping large amounts of cash creates unnecessary risks when bank savings earn interest and electronic payments work well.
