The CZR membership met with the RBZ Governor, Dr J. P. Mangudya to discuss among other issues, allegations of cash hoarding by retailers and wholesalers as the liquidity crisis continues to wreck havoc in the economy.
The meeting was a no-holds-barred one that was a huge success with tangible outcomes that led to the press statement being issued with highlights of the way forward.
The RBZ has set maximum cash back to US$20.00 per customer and this is in line with plugging loopholes that some unscrupulous businesses were exploiting. An example was given of a business that was supposed to bank US$40 million but only deposited US$10 million and alleged that US$30 million had been issued to the public as cash back yet upon physically checking instore, no cash back was being issued.
The retailers and wholesalers committed to complying with the directive to bank their daily proceeds, a move that will go a long way in easing the cash crisis in the country. The RBZ also directed retailers and wholesalers to stop, forthwith, the three tier pricing system, a position that was also agreed upon.
The RBZ on its part committed to ensure it expedites the issuing of POS machines in line with the ongoing efforts to promote use of plastic money in.the economy. This will also promote convenience on the part of the transacting public.
Retailers and wholesalers are no longer allowed to pay cash to manufacturers and suppliers as the RBZ has committed to doing so and assured business that the apex bank had already injected US$100 million into the economy to offset all outstanding payments to foreign suppliers . The RBZ is set to inject another US$70 million in the coming few days, drawing down from the Afreximbank facility extended to the country. The governor also cited the ongoing tobacco sales as another source of foreign currency in the short term.