HARARE – In a move designed to alleviate the impact of the recent Zimbabwean dollar (ZiG) devaluation, the Reserve Bank of Zimbabwe (RBZ) announced significant increases to transactional limits on mobile money and electronic funds transfer platforms on Friday, 1 November.
The adjustments, the central bank stated, directly reflect the ongoing fluctuations in the official exchange rate and aim to bolster the use of digital payments for goods and services within the country.
The RBZ’s statement clearly outlined the changes: “The Reserve Bank of Zimbabwe wishes to advise the public that transactional limits for payments made via mobile money and electronic funds transfer platforms have been reviewed upwards to further support the payment for goods and services in ZiG. To reflect the movements in the official rate, the transactional limits have been reviewed…”
The most noticeable changes affect person-to-person (P2P), person-to-business (P2B), and ZIPIT transactions. Previously capped at ZiG2 400 per transaction and ZiG8 000 per month, these limits have been doubled. The new limits stand at ZiG4 800 per transaction and ZiG16 000 per month for all three payment types.
These increases aren’t limited to individual transactions. The RBZ also addressed business-to-business (B2B) and business-to-person (B2P) electronic fund transfers. For B2B trade payment batches, the limit has jumped from ZiG280 000 to ZiG560 000, while individual transactions are now capped at ZiG48 000, up from ZiG24 000. Similarly, B2P transactions saw a substantial increase, with the batch limit rising from ZiG80 000 to ZiG160 000 and individual transactions from ZiG8 000 to ZiG16 000.
The timing of this announcement is significant. On 27 September, the RBZ devalued the ZiG by 43%, setting the official exchange rate at 1:23.4 against the US dollar – a considerable drop from the previous rate of 1:14.1.
This devaluation was a direct response to the widening gap between official and unofficial exchange rates. However, the ZiG’s weakening trend has continued since then, and as of Friday, the official exchange rate stood at 1:28.68.
The RBZ acknowledged the ongoing volatility: “For the transacting public’s convenience, the bank will continue to monitor transactional limits and review them to promote a cash-lite economy and continued ZiG stability.”
This suggests that further adjustments to transactional limits may be forthcoming depending on future movements in the official exchange rate.
The increased limits are intended to ease the strain on businesses and individuals caused by the weakening ZiG. By facilitating larger digital transactions, the RBZ hopes to encourage a shift towards a more cash-lite economy and mitigate the challenges posed by the fluctuating currency.
