Finance Minister raises concerns over rising US$ cash withdrawals, pushes for shift to digital payments

Finance and Investment Promotion Minister, Mthuli Ncube, on Thursday, expressed deep concern over the increase in US$ cash withdrawals, warning that it heightens the risk of informality, tax evasion, corruption, and administrative inefficiencies.

Presenting the 2026 National Budget, Ncube said the Emerging Sector continues to account for a substantial share of economic activity, with foreign currency dominating over 90% of physical cash transactions across both formal and informal markets.

He highlighted that cash withdrawals continue to rise due to the impact of the shadow economy.

“On average, ATM withdrawals amounted to approximately US$265.8 million per month between April 2024 and June 2025, of which over 90% were in United States dollars. Banks currently maintain nearly US$1 billion in cash and Nostro balances to meet withdrawal demand. The continued increase in cash withdrawals which reached US$353 million in June 2025.

“In light of these challenges, it is imperative to introduce measures that discourage excessive cash withdrawals, enhance transparency, strengthen tax compliance and gradually shift economic activity toward formal and digital payment platforms,” he said.

To this end, Ncube announced a 0% withdrawal charge for amounts between US$0 to US$500 for individuals, with a 3% fee applied for withdrawals between US$501 and US$10,001. For corporates, the tax-free threshold begins at US$5,001 and upwards. *_-NewZimbabwe_*