The Reserve Bank of Zimbabwe (RBZ) is set to launch a sweeping crackdown on individuals and businesses stashing large sums of cash outside the formal banking system. Authorities warn that hoarding money in deposit boxes, company premises, and private homes is starving the economy of much-needed liquidity, hindering financial stability and growth.
RBZ Governor Dr. John Mushayavanhu, in his 2025 Monetary Policy Statement, labeled the practice as “financial disintermediation” and a violation of the Anti-Money Laundering Act. He pointed out that some manufacturers and informal retailers were refusing to bank their earnings, instead storing millions in cash deposit boxes, further disrupting financial flows. The Financial Intelligence Unit (FIU) has been tasked with investigating and taking action against offenders.
FIU Director-General Oliver Chiperesa confirmed that regulations are being finalized to ensure legal enforcement. “Cash deposit boxes are meant for storing important documents, not hoarded money. Keeping large sums of cash outside the system is illegal and undermines efforts to maintain financial transparency,” he stated. Authorities are keen to sustain Zimbabwe’s removal from the Financial Action Task Force (FATF) grey list, which was achieved through tightened financial oversight.
With the ongoing adoption of the Zimbabwe Gold (ZiG) currency, authorities are pushing for greater reliance on the formal banking system. Dr. Mushayavanhu emphasized that the stability of ZiG has increased local currency transactions and deposits, signaling growing confidence. He also noted that fuel sales and other key transactions are expected to shift towards ZiG as the market embraces it as a reliable store of value.
To further incentivize banking, the RBZ has introduced higher interest rates on savings while raising transaction limits on prepaid credit. These measures aim to encourage a culture of saving and financial inclusion. Meanwhile, the central bank now requires 50% of corporate quarterly payment dates (QPDs) to be settled in local currency, reinforcing efforts to stabilize and strengthen Zimbabwe’s monetary system.
