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Chinamasa explains cash shortages

Finance minister Patrick Chinamasa has said shortages of cash reflect the mismatch of US dollars in bank accounts and physical cash in the economy.

Minister Without Finance: Patrick Chinamasa
Minister Without Finance: Patrick Chinamasa

Physical cash is comprised of US dollars, bond notes and other currencies in circulation in the country. 

“This cash shortage reflects the negative perennial trade imbalance wherein our imports are more than exports by exports around $3 billion on a yearly basis. 

“So, we need to target our policies to reduce our trade balance,” Chinamasa told the National Assembly in a ministerial statement last Thursday.

He said the shortage of cash also reflects the poor circulation of money in the economy due to lack of confidence, discipline as well as rent seeking behaviour.

“Mr. Speaker, Sir, there is $1 billion of physical cash in circulation made up of $180 million in bond notes, $28 million in bond coins and $800 million.  We consider this to be sufficient if it was circulating efficiently.

“The $1 billion translates to around 15 percent of deposits which is international best practice in normal economies.” Daily News

  • Thats naked truth

  • It means that u a incompatant !!!

    • tintin

      Incompetent

  • yakamboendepi ma us anga akazara muno munhu uchitora yaunoda kubank saka yakazoendepi

  • We don’t need explanations we need solutions.

  • Its confusing. What’s your point?? Explain in a layman’s language

  • It means that you’re a useless cunt. Nicompoomp. In Swahili we call people like you “debe tupu” meaning empty noisy vessel.

  • Electronic money is not money without an equivalent of hard cash in circulation

  • Lol while he is sitting on millions in his bank accounts really must be thinking we did not study accounting and economics at school these idiots

  • There is nothing to explain!

  • Political language. Guys just swallow your pride and tell the truth. You failed us fulltime

  • So whatt???

  • Question is what/who caused the mismatch?

  • Kusvika rinhi muchingo explainer “cash shortage”.. we need a concrete solution to fix this madness..

  • This guy is not serious, and he calls himself a Minister of Finance. Pane chinobuda ipapa. Adii kungonyarara zvake.

  • What is needed is a solution not an explanation.

  • Which cash, u mean american dollars? U maroons y cant u just abort rand once

    • What will the rand do to alleviate the shortages..??

    • The rand will fail the US dollar did. Forex must be earned either thru exports or FDI. Even if we adopt the rand, it will find its way back to SA thru imports. What we need is an economy that is able to export more than what we import.

  • So!so!..it means you have failed rite?

  • Is mad

  • Go rand fulstopo

  • RTGS manifestation

  • U r only realising now?

  • Ko zvamunomboramba vani kuti zvinhu hazvina kusunga munyika.

  • And this piece of shit calls himself finance minister?? Yawn..what a joke!

  • better to keep quiet these guys can fly day by day ,70 people and their allowances just to go for useless speeches in USA , they know where they keep state funds these guys

  • Those guys they said if bond doesn’t workout they will resign. Now they should as well do that

  • The solution is for the whole zanu pf to resign because they have taken the country to doldrums

  • Only idiots can believe Mugabe’s cabinet of babooons

  • U will keep on changing posts…blaming this after that…. Introduce harsh punishement on any one who is corrupt e.g public death by a Guillotine then change your economic policies and respect the rule of law so security will be a guarantee to would be investors.

  • Hard cash does not affect RTGS. Why are u limiting electronic transfers out side zim. Zim accounts are in us dollars not other currency. Why is it if I want to make a electronic transfer to my suppliers out zim it’s impossible? It’s common knowledge that if u restrict electronic transfer people demand hard cash and deposit it out of the country were transfers are not restricted. Therefore Mr minister ur policy is cozing the problem. Ease the electronic system

    • They cany do that because the value of the currency/ bond note that we transact with is over exaggerated and there is no US dollar in the local economy to match the Bond notes. So we have fake electronic miney that cannot be acceptable in foregn markets.

    • That’s the question we should ask. In 2009 there was real money were did it go . What did they do with our money

    • They kept on importing more than they Export, resulting in a trade deficit, which is continuing to widen

  • thats a lame excuse why dont these financial term to financial people not to patronize us with with zvimastatement

  • thats a lame excuse why dont these financial term to financial people not to patronize us with with zvimastatement

  • Explanations dzablaz ava dzakaoma haufi wakanzwa chero one ine direction

  • Chinamasa wacho mubvisei haana zvaarikuita xxx

  • gara zviya heard mr minister makaita law zviya not finance munenge murikutambira side risiri renyu offside

  • Kana mazviva henyu cde itai zviite chete

  • What does that even mean… busy talking bush economics n finance

  • Physical cash us $ or hard currency was momped up by zanu pf and Grace Mugabe buying a us$500 000.00 cars God know how many other things and some taken out by people like Gono and team of corupt bank managers corupt ministers and a little on government expenditure bcz zanu pf is broke and doesn’t generate income they resort yo the parrel market.

  • This is a politician not qualified in to be in key ministry like Finance.He can do better as a political commissariat

  • Hey don’t explain accept your failure…..Rhodesia was a producer and Zimbabwe is a consumer

  • Chinamasa uriduzvi chairo

  • arikutiiko vemuromo kunge mombe yanwa weti paruzevha uyo

  • Why do you have to explain a cash shortage kkkkkk

  • Lying bustard

  • This is the only country in the world economy melted with out a war

  • But wat about those who are purchasing luxury cars if it was someone he was going to be investigated but those ones are untouchable your laws work only to the poor not the rich ones they do wat they want and u can’t expect to hve enough while it’s not your currency you are a fool

  • s

    its not chinamaba;s problem its Mugabe. why did he fire biti. why did he not become a statesman and take ministers who performed well from the opposition during gnu. I think from the first time I will call my president stupid or is it because of grace. of not him alone watch the stupid zim standing all night in bank queus and still stay away from voting and registering queues. zims please let translate the bank queues to queues to send Mugabe packing.

  • Saka

  • No need to explain… We already know the truth

  • i never liked this dude

  • jack albert

    The Banks should be given a pat on the back for selling the idea of plastic money so well.Cheaper ,safer,convenient and does away with thee need to carry cash.Less loss due to corruption and theft.Now we need to focus on ways to convert cyber currency into hard cash that we did away in step one..

    • jack albert

      You also put policies that limit employment outside our boarders.

  • haaaa iriwo iri gaba reweti, mumwe akazoti maromo aro anenge sinhi remombe

  • Zimbabwe need new fresh blood leader,changd&new ideas.We can not spend our tym beating a dead donkey zimbabwe’s issues as yu know mr chinamasa.Zim is a rotten country so far?

  • Ayatollah Gabriel Mugabeche

    Kungowawata uko. Stop trying to put a lot of jagon, its either there is cash or no cash hapana zvekunzi physical cash! Zvirinane kutoti physical money kwete cash, its always physical Mr Idiot!

  • vembuya

    Vamwe vanhu vakazvarwa chembere dzaenda kumunda shuwa vakachingiwa ne pwere ndokuramba vari pwere.

  • cineaste

    “…which is international best practice in a normal economy”….well WE DON’T HAVE A NORMAL ECONOMY YOU IDIOT!!! FFS!

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