Mobile money service EcoCash has increased its transaction limit by an average of 230% as the local currency tumbles against the US Dollar.

EcoCash said it had increased the daily limit to ZW$75 000, and to ZW$359 000 for mobile clients.

Additionally, consumers can send up to ZW$350 000 per day, with the transaction limit for merchant payments increased by 50% to ZW$600 000 per month.

ICT expert Brighton Musonza said, “It (was) a move in the right direction as consumers have been complaining about low transaction limits considering the raging hyperinflation.”

Zimbabwe’s surrogate currency, the bond note, had been touted as being of equivalent value to the US dollar in 2016. But it has tanked and was trading at a 500% discount to the greenback.

Independent economist Victor Bhoroma added: “The new transactions are reflective of what is happening in the market. The fundamentals are definitely not right to sustain the local currency.”

Bhoroma said it was imperative for the authorities to keep reviewing the situation considering the escalating levels of inflation.

In a recent quarterly update, for the period ending 31 May 2022, EcoCash company secretary, Charmaine Daniels, said the company had witnessed growth of 38% in wallet funding as customers continue to show preference for mobile transaction payment over other platforms.

The mobile business also saw a 3% growth in transaction volumes compared to the prior quarter due to an increase in customer activity.