NewsExpress banner First Bank Fashion Souk Fidelity bank card banner Umm Sulaim's Thoughts Camano banner

50 companies control $9.5b of Zimbabwe’s bank balances and it’s worrisome: RBZ

By News Express on 31/10/2019

Gmail icon

Views: 278

 •RBZ Governor, Dr John Mangudya
•RBZ Governor, Dr John Mangudya

The Reserve Bank of Zimbabwe (RBZ) is deeply worried that only 50 companies in the country own half of the $19 billion bank balances in the financial services sector, even as the country plans to introduce new $5 notes and $2 coins in two week’s time, in a prolonged battle to ease cash shortages in an inflation-ridden economy.

The Reserve Bank of Zimbabwe Governor, Dr John Mangudya, announced this while addressing the media after presiding over the Monetary Policy Committee (MPC) in Harare, Tuesday, expressing fear that cash shortages have resulted in barons charging premiums of up to 60 per cent, “leading to the unscrupulous breaking of the law with two-tier pricing for digital money and cash.”

He also noted that a situation where 50 firms control half of bank balance posed a high risk of manipulation and pushing up of exchange rates on the parallel market.

“Almost 50 per cent of the total $19 billion bank deposits are held by only 50 companies, which means the rest of the populace has little amounts in their bank accounts. The central bank, therefore, needs to closely monitor the flow of money from these accounts to avoid risks which may lead to the spiralling of the exchange rates,” he said.

This is coming on the heels of public outcry against Zimbabwean authorities for allegedly allowing certain individuals and firms linked to the ZANU-PF-led administration to engage in illegal foreign currency dealings with no consequences against the culprits.

For example, media reports confirmed that last month, RBZ’s Financial Intelligence Unit closed in on the accounts of Sakunda Holdings and its subsidiary firms amid concerns they were heavily involved in illegal foreign currency dealings. But there were concerns that the move was ostensibly to facilitate an “analysis” into the operations of the companies. Yet, nothing of any findings has since been placed in the public domain, raising further fears some authoritative figures could be complicit with illegal goings-on within the system.

Sakunda Holdings owner, Kuda Tagwirei, is a close ally to President Emmerson Mnangagwa.

Explaining the rationale for injecting additional cash into circulation, the governor said it is designed to effect an upward review of daily withdrawal limits, details of which will be announced later.

And to douse fears of further inflation, he reassured that more cash will not fuel inflation. His words:  “When you are substituting your cash for plastic money, you don't increase inflation, but it will help the population . . . to the extent that people are going to use their money without being charged premiums.”

•Excerpted from New Zimbabwe (London) and The Herald (Harare)

Source News Express

Posted 31/10/2019 11:59:33 AM





You may also like...
2 men land in trouble for killing police...

Corps members boycott Anambra Senatorial rerun poll

Tax men raid Google HQ as part of...

CCT blasts FG over shoddy trial of Justice...

Baptism of fire: Louis van Gaal off to...

Concerns over Southeast Governors’ indifference in zone’s development...

No government exists without security of lives, property...

Telecoms operators seek review of taxes, levies

Shell invites applications for university scholarship

Soyinka goes back to America less than a...

World Oral Health Day: 750 benefit from Kaduna...

CBN dismisses reports on floating of the Naira...


Latest News Court orders DSS to release Sowore, Bakare within 24 hours US Indictment: South-East governors declare support for Air Peace boss Labour, FG at war over tenure extension, suspension policy Facebook rumour spreads fear across America Border closure: Ghanaians shut 1,000 Nigerian shops Policeman in trouble for allegedly fondling dead woman’s breast Nigeria records highest rate of malaria cases globally Vessel carrying 150 migrants capsizes APC plot for one-party state coup against democracy — PDP Hate Speech Bill: We won’t pass anti-people laws — Senate President Amnesty Programme: Dokubo inaugurates monitoring, evaluation committee •Says, it’s the beginning of a new era’ Court orders El-Zakzaky, wife to be moved to prison


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (568,735 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (455,146 views) Shameless Genevieve Nnaji exposes breasts in public (404,903 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (339,583 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (306,493 views) 10 cars more expensive than Jets (289,954 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (260,564 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (259,323 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (240,774 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (227,268 views) Lagos plane crash: Journalist releases victims’ names (203,177 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (199,692 views)


CBN milk production

CBN banner advert

UBA Wise Savers Promo


Categories Advertorials (3) African Press Organisation (81) Art & Literature (111) Business & Economy (4,610) Business Verdict (89) Columnists (1,154) Complaints & Requests (97) Enterprise & Opportunities (219) Entertainment (715) Features (851) Global Business Monitor (497) ICT Monitor (71) International (4,297) Interview (216) Live Commentary (30) Love Matters (177) Maggie's Blog (505) News (54,844) Opinion (1,434) Pidgin (18) Politics (11,843) Religion (1,129) Sports (2,243) Stock Watch (40) AMA & Al Jazeera Global Update







APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera