Zimbabwe sets withdrawal limits for new currency ready for release

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Zimbabwe’s central bank says its new Zimbabwe Gold (ZiG) banknotes will hit the money market Monday and individuals will be allowed to withdraw only ZiG3,000 per week and companies ZiG30,000 per week.

According to the state-controlled Sunday Mail newspaper, Zimbabweans will start withdrawing cash and coins from their bank accounts on Tuesday.

In an interview with the newspaper, Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu said all the necessary information about the distribution of the money and withdrawal limits has been relayed to commercial banks.

Schools, hospitals, clinics and local authorities will be allowed to withdraw up to ZiG250,000 per month and government ministries ZiG300,000.

There are no withdrawal limits of cash withdrawals for parliament, courts and international organizations.

Withdrawal limits for foreign currency, including United States of America dollars, remains unchanged.

Customers with a valid need to withdraw cash above the stipulated limit are expected to apply for permission to the RBZ’s Finance Intelligence Unit, which recently launched a clampdown on money changers in conjunction with the police.

So far, some suspected money changers have been arrested in Harare, Bulawayo and Masvingo for allegedly violating some provisions of the Exchange Control Act and Exchange Control Regulations.

Some of them are in custody.

Individuals and companies are crying foul over the withdrawal limits of the ZiG, which is selling at 20 per US dollar in the black market. In the official market, its trading at US$1:ZiG13,2889.

The new currency replaced the Zimbabwe bond, which collapsed due to hyperinflation. The ZiG is backed by gold, other minerals and foreign currencies.

Mushayavanhu indicated recently that the RBZ has US$100 million in foreign currency and 2,5 tons of gold worth US$185 million.