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
-
Inside the OSP’s “Wanted” list: Who are the fugitives under manhunt?
4 minutes -
How Ghana’s Prince Anthony is transforming diaspora tourism in Africa
17 minutes -
Reflo’s, The Florence Mensah Foundation distribute sanitary pads to girls in Ashaiman, Nima and Ochiso
21 minutes -
Accra hosts IPRA Conference & Awards for the first time
25 minutes -
Asantehene was instrumental in me becoming Prof Mills’ running mate – Mahama reveals
26 minutes -
Otumfuo warns of unrest if Ghana’s mining gains stay overseas, urges gold markets to invest in local industry
31 minutes -
UMaT associate professor alleges breaches of University statutes, petitions GTEC to act
37 minutes -
Harnessing Pan-African Potential: The Role of the Pan African AI Summit in Shaping Africa’s Digital Future
38 minutes -
Mahama reaffirms commitment to strengthening chieftaincy institutions
40 minutes -
CFAO partners with Lovol to power Ghana’s heavy equipment market
1 hour -
‘I don’t know what you call rich’ – Bryan Acheampong on support for Wontumi’s GH¢50m bail
1 hour -
Dr. Who? Ghana’s Epidemic of Degrees without Diagnosis: Satirical Musings on Ghana’s Curious Obsession with Titles
1 hour -
Glaucoma Laser treatment launched at St. Thomas Eye Hospital
1 hour -
Hindsight: What does the law say about Nations FC’s walk-off?
2 hours -
Mahama outlines the bold vision behind establishment of the GoldBod
2 hours