Reserve Bank of Zimbabwe Squashes Nostro Account Rumors, Assures Abundant Foreign Currency Supply

By iHarare Last updated Jun 10, 2023

Reserve Bank of Zimbabwe Squashes Nostro Account Rumors, Assures Abundant Foreign Currency Supply. In a resounding rebuttal, the Reserve Bank of Zimbabwe has dispelled rumors surrounding a purported shortage of foreign currency in the market, assuring the public that there is more than enough to meet the demands of banks “customers. Moreover, the Reserve Bank…

Reserve Bank of Zimbabwe Squashes Nostro Account Rumors, Assures Abundant Foreign Currency Supply

In a resounding rebuttal, the Reserve Bank of Zimbabwe has dispelled rumors surrounding a purported shortage of foreign currency in the market, assuring the public that there is more than enough to meet the demands of banks’ customers.

According to the central bank, the foreign exchange liquidity position of banks stands at a substantial 60% in both cash and balances held with foreign corresponding banks.

In the press statement, the Reserve Bank swiftly dismissed claims made by certain bank media, refuting the notion that funds held in NOSTRO accounts are not considered foreign exchange. Additionally, the central bank categorically denied allegations that the use of international debit MasterCards and credit cards had been deactivated.

Moreover, the Reserve Bank highlighted that FBC Bank Limited and BancABC Limited, the two banks initially cited as having deactivated card services, have since issued statements distancing themselves from the circulating claims on social media.

Here is the press statement in its entirety;

STATE OF FOREIGN EXCHANGE LIQUIDITY IN THE ECONOMY

The Reserve Bank of Zimbabwe (the Bank) wishes to advise and reassure the public that there is sufficient foreign exchange in the market to satisfy all needs and demands of banks’ customers. The foreign exchange liquidity position of banks stands at 60% in both cash and balances held with foreign corresponding banks.

In that regard, statements allegedly made by certain banks and shared via social media, purporting that funds held in foreign currency accounts (FCAs) (popularly referred to in Zimbabwe as Nostro accounts) are not foreign exchange and that the said banks were deactivating the use of international debit MasterCard should be disregarded. The statements are uncalled for as they do not represent the true state of the foreign exchange liquidity position in the economy.

The Bank has noted that FBC Bank Limited and BancABC Limited, banks cited as having advised the public that they were deactivating card services, have since issued statements distancing themselves from the statements circulating on social media.

Yesterday’s notification from banks, which suggested that USD transfers from NOSTRO accounts might not hold the same equivalence as physical USD currency, alarmed many citizens, particularly those who heavily rely on NOSTRO payments, including civil servants and government contractors.

•‘Panic Mode Activated’: Zimbabweans React as Hopewell Chin’ono Discloses Reserve Bank Governor John Mangudya’s Response to Nostro Account Concerns

The lack of response from key government figures yesterday, deepened the uncertainty, leaving the populace with lingering doubts about the nation’s financial well-being.

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