ZANU PF politburo member Sikhanyiso Ndlovu has said Zimbabweans should not keep money at home like Asians and urged people to bank their money to help ease the country’s liquidity crunch.
Ndlovu said people should desist from money laundering as it was a bad practice which had knock-on effects on any economy.
“We should all cultivate a practice of banking our money. We should use our banks and avoid keeping money at home as that is a bad practice with huge effects on the economy,” Ndlovu said at the Bulawayo Press Club on Saturday.
“We should bank our money to avoid the liquidity crunch that we are currently facing as a nation.
“We should not be like some of our friends from the Indian community who do not use banks, but prefer to keep their monies at home. You will never see an Indian queueing to bank money,” he said.
Ndlovu’s call for people to bank money comes at a time when the country is facing a serious liquidity crunch that has forced some companies to shut down, downsize or retrench in order to stay afloat.
Analysts indicate that the economy and the banking sector, which is reeling from the liquidity crunch and systemic vulnerabilities, needs a massive cash injection to avoid a full-blown crisis.
Analysts also indicate that the country could wade out of the liquidity crunch by attracting foreign direct investment, boosting exports and creating confidence in the banking sector to attract depositors.
In March, the African Export-Import Bank announced a $100 million loan to Zimbabwe’s banking sector to ease a credit crunch that had deepened the country’s economic woes.
At the same time, the Reserve Bank of Zimbabwe added four currencies, the Chinese yuan, the Indian rupee, the Australian dollar and the Japanese yen to the existing basket, which already included five others, to try and ease the cash crunch.