Zimbabwe: Banks hit by liquidity crisis
Most banks are now limiting daily cash withdrawals to $500.Zimbabwean banks have introduced new cash management systems as they struggle with a liquidity crisis, according to The Herald.
The news source says that most banks are now limiting daily cash withdrawals to $500 (€440), down from from $2,000 previously. Some banks have even switched off their automated teller machines.
Reserve Bank of Zimbabwe (RBZ) governor John Mangudya attributed the liquidity crisis to "salary and bonus payments" to civil servants.
Back in February, the central bank revealed that $180 million has been lent to banks through a $200 million inter-bank facility designed to support financial institutions in deficit.
The Afreximbank Trade Debt Backed Securities, underwritten by the Africa Export and Import Bank, enables banks with surplus liquidity to support those in deficit.
"It is a well known fact that the Zimbabwean banking sector and more generally the economy are now facing serious liquidity problems," said the president of Afreximbank Jean-Louis Ekra during the launch.
"This situation makes it difficult for many companies to access funding at affordable costs, especially SMEs," he added, noting that the facility would help revive interbank lending.