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
-
Even Salah would struggle at Spurs – Postecoglou
2 hours -
Facebook and Instagram get rid of fact checkers
3 hours -
Trudeau says ‘not a snowball’s chance in hell’ Canada will join US
3 hours -
Europe leaders criticise Musk attacks
3 hours -
Search goes into night for survivors of Tibet quake
4 hours -
NPP must rise again, says former Deputy Housing Minister
4 hours -
Dr Prince Hamid Armah: Eight years, 2 different stories
4 hours -
Keep the light on as we did; you’re in government – Herbert Krapa
5 hours -
Independence Square glows as Mahama takes presidential oath again amid grand celebration
5 hours -
COP Tiwaa Addo-Danquah’s bust at EOCO destroyed
6 hours -
Trump threatens ‘very high’ tariffs on Denmark over Greenland
6 hours -
Full text: Mahama inaugural speech
7 hours -
CAF increases CHAN prize money to $3.5m
7 hours -
NFF appoints Éric Chelle as Head Coach of the Super Eagles
7 hours -
Collins Adjei Kuffuor writes: Mahama’s inaugural speech – a blueprint for Ghana’s future
7 hours