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Zimbabwe sets withdrawal limit, charges farmers to use e-money

16.03.2017

This is to ease the on-going cash shortage in Zimbabwe.

In a bid to end the persistent cash shortage confronting Zimbabwe, the Reserve Bank of Zimbabwe (RBZ) has set a withdrawal limit for tobacco farmers, urging them to make use of electronic money for their transactions.

In a joint statement with the Tobacco Industry and Marketing Board (TIMB) and farmers' associations, the Reserve Bank of Zimbabwe (RBZ) said tobacco farmers will be permitted to withdraw up to $1,000 from first sale and $500 for subsequent sales.

"The Reserve Bank of Zimbabwe, TIMB and Tobacco Farmers Associations wish to advise that under the current 2017 tobacco selling, individual small-scale farmers will be allowed to withdraw cash of up to $1,000 from their first tobacco sale and a maximum of up to $500 for subsequent sales."

Commercial farmers would be required to justify their cash requirements through applications to their bankers. They will be required to give a day's notice for such cash withdrawals.

RBZ in the statement also noted that with collaboration with all the banking institutions, the bank is geared to assist farmers to access their cash during the current marketing season while it encouraged farmers to use electronic money for their transactions.

Since last year, Zimbabwean banks have been facing chronic cash shortage. RBZ has continued to introduce different measures to end the cash shortage,  including the introduction of bond notes, and setting withdrawal limits among others.