ZCTU letter to Dr Gono

22 July 2008

The Governor

Reserve Bank of Zimbabwe

Samora Machel Avenue

Harare

Attention:  Dr. Gideon Gono

Dear Sir,

Re:    Call for the Removal of the Maximum Cash Withdrawal Limit

We hereby write to you advising your office to remove the pegging of the maximum figure one is allowed to withdraw from his or her bank account.

This call has been necessitated by the fact that as a Workers Representative Board we are receiving numerous calls from our members who face serious problems, simply because they cannot access available cash from their accounts.

Whereas the Monetary Authorities pegged the maximum cash withdrawal allowable at Z$100 billion and whereas this appeared sufficient in the eyes of those who have unfettered authority over those accounts, the amount is a joke, given the reality on the ground.

As you may be aware, transport alone, costs around Z$150 billion, on average.  How then do the Monetary Authorities expert an ordinary employee to report for duty and go back home when he/she is allowed to only withdraw a maximum amount of Z$100 billion?.  This employee is also expected to make available to his family, bus fare for his/her school going children, funds for daily expenditure.  It has also come to our attention that most employees are now spending their productive time queuing for cash at the banks.  

We are further reliably informed that members of the Armed Forces are treated differently from the rest of the Society as far as cash withdrawal rules are concerned.  It is rumored that they are allowed to withdraw Z$1.5 trillion and above per day.

If the immediate above is true, what do you think workers would feel, when they walk to and from work and also when their families go for days on empty stomachs, when they know that they have fat Bank Accounts.

It is in this light that we are advising your office to either remove the limit as you did with cheque transactions or at least allow account holders to withdraw a minimum amount equivalent to two days transport fare, plus necessary daily expenses.

Our cursory calculation reflects a figure of Z$2.5 trillion per day as at 21 July 2008 will be reasonable.  The amount has to be reviewed after every 3 days, but still using the public transport cost as the entry point.

We trust you take our advice seriously and thus address the Workers and Society’s concerns, before they take the law into their own hands.

We remain available for any further engagements.

Yours sincerely,

Wellington Taylor Chibebe

Secretary General