The Sunday News
THE anticipated introduction of the bond notes by the Government at the end of this month to ease the serious cash crisis that the country is grappling with has brought with it a lot of speculation in the economy.
The speculation has seen a lot of businesses preferring to hold large amounts of cash and not depositing them in banks as should be the case. While it is true that the situation is weighing down on the ordinary man some of whom are unbanked, there is no justification whatsoever for anyone to hoard cash instead of releasing it into the market. We believe such behaviour is criminal and strategies should be put in place to make sure as much cash is released into the market for free circulation.
The hoarding of cash has caused businesspeople to be prime targets of armed robbers as has been seen in Bulawayo where such cases that had disappeared are emerging and the cause can not be anything else other than the behaviour of the business community who are reluctant to employ proper cash handling practices.
Chief police spokesperson Senior Assistant Commissioner Charity Charamba on Friday expressed concern over the increase in armed robbery cases in the country. She said the armed robbers raided company premises, supermarkets and service stations during the night and urged the business community to be on high alert and to employ the services of reputable security companies.
She said the cases were increasing at an alarming rate and attributed their rise to the recent culture by the business community not to deposit cash in banks. She said police were working hard to make sure the criminals; most of whom were unrepentant ex-prisoners were brought to book.
“There is a recent upsurge of armed robbery cases in the country where we believe some unrepentant ex-prisoners are targeting company premises, supermarkets and service stations. The increase can be attributed to the fact that businesspeople are not banking money. We therefore encourage them to do so to avoid being targeted by the robbers,” she said.
Last month four gun-toting robbers raided a cigarette distribution company in Bulawayo and went away with $20 000 cash, in what later turned out to be an inside job operation.
It is our humble observation that the rise in cases of robberies is caused by the lack of confidence and speculative behaviour by the local business community in the pending release of bond notes that has seen most businesses opting to keep cash within their premises.
The speculative behaviour has had negative effects on the consumers as in recent weeks we have seen the prices of basic goods going up and other items have run out of stock while supermarkets are no longer willing to give cashback to customers who prefer to use plastic money.
There is an artificial shortage of goods and in some quarters people are resorting to panic buying of such things as cooking all, sugar, flour, rice, soap and washing powder while some are holding on to large amounts of money which they are unwilling to deposit in banks.
This is despite so many assurances by the Reserve Bank of Zimbabwe Governor Dr John Mangudya for the country’s citizenry not to panic as nothing was going to change with the introduction and release of the bond notes into the market.
The bond notes are largely expected to plug the cash leakages that are rampant with the US dollar that the country is using as its main currency. Concerns from the public have been that the Government seeks to return the Zim dollar through the back door.
“The bank has taken note of the public’s concerns, fear, anxiety and scepticism of the bond notes which all boils down to the general lack of trust and confidence within the economy,” said Dr Mangudya.
This situation has had its negative impacts on both the consumer and the business community alike as it has created a not so conducive operating environment for both. For any economy to function there has to be free circulation of money but in Zimbabwe that is not the case.
Banks that are supposed to channel money to people and the business community have no cash because those that are supposed to promote its circulation are not banking. And instead of it being a circle it now becomes a one-way process.
That is not good and it does not promote a proper business environment. It is therefore our humble submission here and now in light of the difficulties that the ordinary people are facing coupled by the fertile criminal environment that is being created by not depositing cash into banks that the business community should desist from withholding cash and start banking it to improve circulation.
We therefore propose that those that are found either by robbers or the authorities with large sums of money supposed to be banked should explain it as they will be sabotaging the economy. It is not a secret that the majority of people are suffering and have suffered enough because of the cash crisis and are no longer patient with the RBZ asking why it is taking too long for the release of the bond notes.
There is a lot of productive time that is being lost when people queue in banks for the little amount of cash that the banks are availing as not everything can be paid using plastic money. We hope the business community would give heed to the advice not to hoard cash as it only adds nefarious activity in our economy. It is our view that the release of bond notes will save the day for many ordinary citizens who have been literally sleeping in bank queues.
