Zimbabwe’s commercial banks are under orders to restrict U.S. dollar transactions to companies and individuals with foreign payments to make, according to a central bank directive that demonstrates the slow progress of currency reforms.
The document, a measure of the foreign exchange controls that remain in place six days after authorities announced moves to ease chronic cash shortages, also states such transactions should be aimed at stimulating economic growth.
It was sent to banks on Friday and seen by Reuters on Tuesday.
Zimbabwe abandoned a discredited 1:1 dollar peg for its dollar-surrogate bond notes and electronic dollars last week, merging them into a lower-value transitional currency called the RTGS dollar.
It launched the RTGS dollar in a “managed float” at 2.5 per U.S. dollar, but as of Tuesday, banks had yet to start selling hard currency in cash.
Banks were only selling U.S. dollars to firms and individuals with invoices or receipts for imports deemed a priority, such as fuel and medicines.
“All interbank market sales to individuals and corporates shall be restricted to funding of external obligations,” and banks should submit dealing reports every two hours, the Reserve Bank of Zimbabwe (RBZ) directive said.
Dealers were encouraged to take steps “to ensure efficient utilisation of foreign currency that is tilted towards the productive sectors of the economy,” it added.
The state-owned Herald newspaper reported that Botswana had offered to lend Zimbabwe $600 million to support its diamond industry and private firms.
Latest Stories
-
Ablekuma North: Nothing untoward happened, there is no illegality – Haruna Mohammed
4 minutes -
Mahama can run Ghana with just 30 ministers – Prof. Avea Nsoh
19 minutes -
Hearts midfielder Saani Mohammed joins Danish side AC Horsens
31 minutes -
West Ham to appoint Potter after sacking Lopetegui
53 minutes -
Ablekuma North: We won’t accept any ‘illegality’ coming from EC – NDC
54 minutes -
I’m done with Ablekuma North, EC should find a new person – Returning officer
57 minutes -
Ghana has the human resources to deal with energy crisis – Mahama
2 hours -
We will miss our former MP Joseph Cudjoe – Effia constituents
2 hours -
Urban Sports Festival: 2025 edition set for January 25 in Accra
3 hours -
Mahama to scrap import duty on vehicles in first 100 days – NDC 2024 manifesto
3 hours -
Appoint the right people to creative arts institutions – Akofa Edjeani to Mahama
3 hours -
Speaker refers to NPP MPs as ‘Micro-Minority,’ sparks outrage
4 hours -
NJOA: An ode to Professor Naana Jane Opoku-Agyemang
4 hours -
Scuffle breaks out during recollation of Ablekuma North parliamentary results
4 hours -
CLOGSAG condemns forceful ejection of civil servants from official residences
5 hours