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Zimbabwe Union Urges Central Bank To Raise Bank Withdrawals Cap


Zimbabwe's main labor confederation says Zimbabweans cannot get by on a mere Z$100 billion a day in the current hyperinflationary environment, and is asking the central bank to raise its daily limit on bank withdrawals from that amount to Z$1.5 trillion a day.

Zimbabwe Congress of Trade Unions Secretary General Wellington Chibebe says the current limit on withdrawals is causing distress for consumers who need Z$160 billion (US$2) just for a minibus commute to work and home again. And many ordinary Zimbabweans - teachers, for example - only earn Z$150 billion a month and must wheel-and-deal to survive.

The union’s letter Tuesday to the Reserve Bank expressed concern too at reports that police and members of other uniformed forces are being allowed to draw up to $1.5 trillion.

Economist Nhlanhla Nyathi said the central bank has capped withdrawals in an effort to block black market foreign exchange dealings, which it considers a driving force of hyperinflation. The central bank recently estimated inflation at around 2.2 million percent a year.

Meanwhile, it emerged that Reserve Bank Governor Gideon Gono is among the 37 individuals whose names were added to the European Union’s sanctions list this week, meaning that he is barred from traveling in Europe that his assets there may be frozen.

More reports from VOA's Studio 7 for Zimbabwe...

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