THE Reserve Bank of Zimbabwe has injected an additional $20 million of banknotes into circulation, with much of it channelled to the People’s Own Savings Bank (POSB).
However, the latest cash injection seems not to have done much in easing the demand for hard cash as witnessed by the long winding queues at the banks. Some depositors were forced to sleep outside banking halls waiting to withdraw their money.
Finance Minister Mthuli Ncube confirmed the injection of the $20 million.
“In the last week alone, we have put in about $20 million,” he said.
“We targeted POSB specifically, but not exclusively, because we know that a lot of our ordinary citizens are banking with them and it’s important that they have all the cash that they need.”
Depositors said they still faced challenges obtaining cash from banks, adding that they observe the situation was getting worse.
Economists say while the RBZ was right to increase cash in circulation given the high demand, it would take time before cash queues start to subside.
The recommended cash levels in circulation are 10 percent to 15 percent of money supply, which is presently estimated at $19 billion.