Zimbabwean banks responsible for cash shortages

by Richard Kilner

Story link: Zimbabwean banks responsible for cash shortages

Gideon Gono, governor of Zimbabwe’s central bank, has alleged that local banks have been responsible for unnecessary cash shortages.

Gono has said that the local banks have not collected money from the country’s main bank and distributed it to clients, thus creating an entirely avoidable shortage of cash.

According to Gono the Reserve Bank has a high level of cash ready for distribution but this cannot reach the people because of imprudent actions on the part of local banks.

The banks’ actions have been described as blatant malpractice by the governor.

This is not the first time Zimbabwe’s top banker has clashed with the practices of the nation’s banks.

Last months he threatened to expose executives and politicians involved in cash hoarding to purchase foreign currency, whilst depriving ordinary people of basic services.