News

ATM limits rise as Zimbabwe's dollar plummets

April 2, 2002

ZIMBABWE -- As the value of Zimbabwe's dollar continues to plummet, the country's major commercial banks and building societies have increased their daily ATM withdrawal limits in a bid to satisfy customers and enable them to make purchases without being inconvenienced.

The limits now range from $5,000 to $20,000, according to a report in allAfrica.com. (One Zimbabwe dollar equals approximately U.S. $55.)

Bankers said the move was meant to allow customers to have cash whenever they needed it during a period of high inflation and the daily price increases of consumables such as sugar and cooking oil.

The First Banking Corporation of Zimbabwe Limited (First Bank) this week began telling customers that they could now withdraw up to $20,000 using their ATM cards. The bank's regular customer base includes members of the Zimbabwe National Army.

NMB Bank Zimbabwe Limited, one of the country's high profile commercial banks, also allows customers to withdraw $20,000 from the ATM. NMB Bank's clientele include chief executive officers and other executives who maintain a monthly balance of at least $50,000 in their accounts.

Standard Chartered Bank of Zimbabwe Limited (Stanchart) allows customers to withdraw up to $8,000 on the ATM. Stanchart also penalizes customers if they withdraw less than $8,000 from the counter using their check book. The penalty is $100 for any withdrawal that is less than $8,000. Stanchart officials say this is to encourage customers to use the ATMs and not crowd bank branches.