RBZ Steps Up Cash Distribution Drive as ZiG Circulation Reaches ZiG703 Million

The Reserve Bank of Zimbabwe (RBZ) is stepping up efforts to improve the distribution and availability of Zimbabwe Gold (ZiG) currency across the country, with a new cash monitoring system aimed at addressing shortages and ensuring equitable access to cash.

According to the latest ZiG Cash Distribution and Availability report, the central bank is prioritising the efficient movement of cash from Central Cash Depots (CCDs) to commercial bank branches and automated teller machines (ATMs), particularly in remote and underserved communities.

The report indicates that ZiG703.4 million is currently in circulation against a deposit base of approximately ZiG32 billion, representing a cash-to-deposit ratio of 2.2 percent. This remains slightly below the RBZ's optimal benchmark of three percent, which would translate to an indicative cash circulation level of about ZiG960 million.

Zimbabwe's banking sector currently operates 428 branches nationwide, although the distribution of these facilities remains heavily concentrated in Harare. The capital accounts for 146 banking locations, representing 34.1 percent of the national network.

The Midlands Province has 48 banking locations, followed by Bulawayo with 44, Mashonaland West with 39 and Manicaland with 38. Masvingo has 35 locations, Mashonaland Central has 22, while Mashonaland East and Matabeleland North each have 20. Matabeleland South has the lowest number, with 16 banking locations.

The report further highlights disparities in institutional coverage, with Harare and Bulawayo each having 20 banks operating at least one location, while Mashonaland East and Matabeleland South have only seven banks each.

These geographical differences have significant implications for cash accessibility, with communities in areas that have fewer banking institutions potentially facing greater challenges in accessing cash services.

The report also reveals that banks are holding approximately ZiG490.4 million, of which ZiG195.1 million is positioned in branches and therefore readily accessible to the public. Customers can however access available cash through bank counters and ATMs, depending on individual banking arrangements and availability.