
Audio By Carbonatix
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
-
China-Ghana friendship built on strong historical ties, mutual trust – Ambassador
17 minutes -
Hohoe MP cuts sod for construction of bridges in constituency
21 minutes -
Treasury bill rates edge up in latest BoG auction
24 minutes -
Ghanaian students abroad to hold global forum on national development
28 minutes -
Alcohol, drugs are not the solution to stress – doctors caution
32 minutes -
TWMA urges youth to avoid drugs during Homowo celebrations
37 minutes -
UBIDS School of Law among 19 schools to run one-year pre-bar course
41 minutes -
Opoku-Agyemang receives update on Ghana National Research Fund
45 minutes -
Mahama underscores importance of faith
50 minutes -
Government allocates ¢100m annually for special needs education
56 minutes -
Sri Lanka prison riots leave 26 dead and more than 100 injured
58 minutes -
China sentences official to death for taking $325m in bribes
1 hour -
Ecobank joins The Build Project as official financing partner
1 hour -
Why some Ghana and other African nations are turning down Trump aid money
1 hour -
An open letter to the President: The excavators are back…
1 hour