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Money Changers Feel The Pinch As Mobile Money Usage Decreased By 2.8%

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The government recently imposed restrictions on mobile money and they also banned use of agent lines. The Post and Telecommunications Regulatory Authority of Zimbabwe’s latest report reveals 2.8% decrease in number of active mobile money subscriptions.

The ban of agent lines was triggered by the desperation of the government to stabilise the USD exchange rate. It seems those in the black market are feeling the heat as this reduced the number of ecocash transactions one can perform per day. Ecocash rates are also now almost the same with bond notes rate making it less relevant.

Post and Telecommunications Regulatory Authority of Zimbabwe’s second Q of 2020 report further clarified the cause of this decline,

In the report they alluded:

The decline is being attributed to the depressed demand in the economy, the deactivation of some agent lines accused of illicit financial activities,”

Report

There was also a decline in the number of mobile money transactions in line with the decline in active subscriptions.

Cash in and cash out transactions also declined and this has attributed to cash shortages in the economy.

POTRAZ‘s first quarter reported increase on mobile money use which was a result of the COVID pandemic, this shows how the government move to ban agent lines heavily affected the sector.

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