{Zimbabwe is facing yet another gloomy festive season as local banks reel under a biting liquidity crunch that has seen the return of long queues and the reimposition of unpopular cash withdrawal limits.}<\/p>\n
Renewed trouble in the banking sector is certain to pile pressure on President Robert Mugabe\u2019s ruling Zanu (PF), which is grappling to arrest the economy\u2019s decline.<\/p>\n
Scenes of long queues at banks will bring back memories of the days of hyperinflation in 2008.<\/p>\n
The Reserve Bank of Zimbabwe earlier this month canceled the licence of Trust Bank, over allegations of abuse of depositors\u2019 funds and violation of banking laws. This sparked a fresh round of depositor anxiety over the banking sector. Last year saw the cancellation of the licences of two banks, Interfin and Genesis Investment.<\/p>\n
Mr Mugabe\u2019s response has been to push for the implementation of the party\u2019s economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset), which was debated by his Zanu (PF) party at a weekend conference held in Chinhoyi.<\/p>\n
Ugly scenes of violence and vandalism have erupted at several banks in Harare, Bulawayo and Mutare in recent days as angry depositors vented frustration over their inability to access funds.<\/p>\n
On Monday, soldiers assaulted a bank official at Allied Bank in Harare, and there was a stampede at Metbank\u2019s Bulawayo branch. Earlier this month, a bank manager at Metbank\u2019s Mutare branch had to be taken into police custody after angry depositors demanded mob justice.<\/p>\n
A bank official at Metbank said on Tuesday: “We are not limiting withdrawals for teachers, but for other clients. It all depends on our allocation. The situation is really bad for the time being.”<\/p>\n
Stephen Gwasira, Allied Bank CE, said the incident at its Harare branch was “unfortunate”. The bank was making “aggressive efforts to address the liquidity constraints”.<\/p>\n
Economic commentator Farai Murambiwa said volatility in the banking sector was a direct consequence of the Reserve Bank of Zimbabwe\u2019s failure to fulfil its function as lender of last resort.<\/p>\n
Finance Minister Patrick Chinamasa is expected to present the budget statement to Parliament on Thursday after a month-long delay.<\/p>\n
Bdlive<\/p>\n","protected":false},"excerpt":{"rendered":"
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