As a follow up to Statutory Instrument 142 of 2019, which reintroduced the local Zimbabwe Dollar as the sole legal tender and banned foreign currency for all local transactions, the government is reported to have banned cash withdrawals from all Foreign Currency (FCA) Nostro Accounts
The directive is reported to have been issued to all banks by the Reserve Bank of Zimbabwe at a meeting today. Individuals and corporates with foreign currency in the FCA/Nostros will instead have to liquidate the foreign currency using the interbank rate prevailing on a particular day, as the foreign currency cannot be used to settle local transactions.
The foreign currency can also be used to settle international transactions for foreign goods and services.
Ironically, after the banning of all other foreign currencies yesterday, many Zimbabweans advised each other to empty their FCA Nostro Accounts as soon as possible warning that the government could limit the functionality of the accounts or raid the accounts of their funds,
Below is an excerpt from the directive.
More Details to follow…