Published: 26 July 2017

The retail sector has raised concern over poor monitoring mechanisms by monetary authorities as some companies are not banking their cash for circulation purposes.

As the cash crisis increases, the retail sector said there is a need for an aggressive mechanism by the central bank on companies that are hoarding cash to ensure that they submit their cash sale returns and make bank deposits.

President of the Confederation of Zimbabwe Retailers, Mr Denford Mutashu said the black market is thriving because a number of companies are not banking and this is affecting manufacturers and retailers on the accessibility of foreign currency to import raw materials and products which cannot be found locally.

Economic analyst, Mr Persistence Gwanyanya said challenges in the functionality of electronic payments is driving high preference of cash and black market activities, thus worsening the cash crisis in the country.

The Reserve Bank of Zimbabwe (RBZ)'s Bank Use Promotion and Suppression of Money Laundering Act compel all companies to submit their cash sales and deposits to the central bank.

Of late, retail outlets were taken to the courts and were found guilty of contravening the act.

The government is encouraging the use of plastic money which has been widely adopted by many.
- zbc

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