Demand for cash withdrawals has increased by huge margins ahead of the festive season resulting in banks experiencing challenges in sustaining requirements for industry and households.The rise in demand for cash withdrawals is being experienced at a time when government employees as well as those from the private sector are accessing their salaries.
Given the limited financial inflows within the financial industry, banks face an acid test in sustaining the cash withdrawal needs of both individuals and companies amid fears of long depositor queues in the next few days.
While admitting that banks are feeling the pressure, Bankers Association of Zimbabwe president, Mr. John Mushayavanhu however said the financial sector has put in place measures to deal with the surge in withdrawals.
â€œIndeed we are feeling the pressures but let me say that depositors should not panic,â€ said Mr. Mushayavanhu.
Although official data from the treasury shows that total bank deposits have increased to around US$2,9 billion in the past nine months fromÂ US$2,1 billion last year, banks have been criticised for their failure to tap more than US$2 billion which is estimated to be circulating outside the formal banking systems.