We have no words…

The Reserve Bank of Zimbabwe issued a statement today banning cash-in, cash-out and cash back transactions from all mobile money platforms within the country from agents and the platforms themselves as can be read both in the image above in the statement below.

1. It has come to the attention of the Reserve Bank of Zimbabwe that some economic agents are engaging in illegal activities abusing the cash-in, cash-out and cash-back facilities thereby compromising the public interest objectives of national payment systems in the economy.

2. Notable activities include the buying and selling of cash through mobile money agents at high rates above the approved charges for cash-in and cash-out with some economic agents not banking cash sales under the disguise of cash-back services.

3. The charging of commissions outside the approved framework adversely affects the smooth operation of payment systems and have the negative effect of distorting pricing of goods and services.

4. In view of the above, all mobile payment system providers and merchants are hereby directed to discontinue cash-in and cash-out with immediate effect.

5. Furthermore, all economic agents are, with immediate effect, directed to discontinue cash-back facilities.

6. Banks, mobile payment system providers and other economic agents are reminded of the need to ensure that the entire ecosystem operate within the confines of law and enforce compliance.

7. Please be guided accordingly.

J. Mutepfa (Mr.) DEPUTY DIRECTOR
FINANCIAL MARKETS, NATIONAL
PAYMENT SYSTEMS 30 September 2019

The move is said to be meant to disable the activities of agents who are ” abusing the cash-in, cash-out and cash-back facilities thereby compromising the public interest objectives of national payment systems in the economy” but in all honesty, we fail to see how this can possibly better when the country’s cash crisis is still in full swing, cash is still very much required for certain transactions, and this will essentially cause the day to day running of many Zimbabweans’ lives to collapse tomorrow, both those who make a living as agents, or literally anyone else who needs the services of a mobile money agent (read: everyone). It seems like the whole move is honestly too drastic a move by the RBZ, and how it will continue beyond this point is a mystery for anyone. After all with all the recent drastic measures the RBZ and even the Ministry of Finance have taken, the country’s financial situation is really just a rollercoaster ride no one asked to be on. Hopefully though this decision gets reversed soon as some speculate it’s mainly to scare illegal money changers and rate agents anyway, but at this point we can’t exactly tell how anything will go.

Give us your thoughts in the comment and stay tuned for further updates of the situation.

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