Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu has clarified the rationale behind the recent decision to lower the cash limit travellers can take out of the country from US$10,000 to US$2,000. The move, now officially gazetted, is part of efforts to curb money laundering and promote the use of electronic transactions.
“Money laundering usually occurs through the movement of cash,” explained Mushayavanhu. “The more cash a country allows its people to take out, the more prone it will be to money laundering.”
The new policy aims to safeguard Zimbabwe from financial risks associated with large cash exports. Mushayavanhu reminded the public of Zimbabwe’s past struggles with the Financial Action Task Force (FATF), when the country was placed on the organization’s gray list.
“It took a lot of legislative amendments and other controls for us to be removed from that gray list,” he said. “This is why we decided to limit the amount of cash individuals can take out of the country.”
However, the RBZ Governor reassured the public that the new regulation only applies to physical cash. “There is no restriction on the amount of money you can transfer electronically,” he said. “You can load as much as you want on your card and use it abroad.” He emphasized that the policy encourages Zimbabweans to rely more on electronic payments, which are easier to monitor and more secure.
Mushayavanhu also expressed his personal advocacy for a cash-light society, both locally and internationally. “Cash is usually associated with the underworld,” he explained. “I would like to see a situation where we use less cash and more electronic means of transacting.”
