SETTLEMENT OF FOREIGN CURRENCY TRANSACTIONS

The Reserve Bank of Zimbabwe (“the Bank”) has noted with concern reports circulating on social media platforms alleging that banks are opening new accounts for what is referred to as “local USD RTGS transactions”. The Bank wishes to advise the public that such reports are false and misleading.

As the public may be aware, the introduction of the multicurrency system in Zimbabwe in 2009, resulted in the banking sector facing challenges of settling United States Dollars (USD) transactions within the local market. To address these challenges, the Bank put in place, in 2009, a system to cater for the settlement of USD transactions to enable the smooth movement of funds and payments within the national economy.

The system allows for movement of USD across banks for all local transactions including interbank settlements, whilst payments to offshore beneficiaries are made through Authorised Dealers’ correspondent banks. All such transactions are processed with the Authorised Dealers doing the necessary screening in order to ensure compliance with all the necessary Know Your Customer (KYC) and Customer Due Diligence (CDD) requirements, as well as other compliance processes and procedures.

The Bank and banks remain available to assist the public requiring processing of foreign payments and cash withdrawals through normal banking channels.

John P. Mangudya Governor

14 October 2020