Connect with us

Hi, what are you looking for?


Zimbabwe USD Nostro Transfers are Fake Dollars??

Mthuli Ncube Rules Out Scrapping 2% Tax
Mthuli Ncube, is the Finance Minister in the Zimbabwe cabinet appointed by president Emmerson Mnangagwa and past chief economist and Vice President of the African Development Bank.

Recently, banks in Zimbabwe made an unexpected and disconcerting discovery: USD transfers from NOSTRO accounts are not equal to real USD cash.

The impact of this statement has caused considerable worry among people, organizations, and political leaders, raising questions about the viability of the financial system of the nation.

The communication from banks conveyed through emails and messages to clients, has left many Zimbabweans bewildered and uncertain about the accuracy of their USD balances and the overall trustworthiness of the banking system. Opposition politician Linda Tsungirirai Masarira, who leads the LEAD party, expressed her scepticism on social media, stating, “Who is fooling who? The banking sector in Zimbabwe is a sham.”

Writing on Twitter, Masarira said,

Banks in Zimbabwe are now declaring that USD balances in NOSTRO accounts are not actual USD. Several banks have been sending out emails and messages to their clients today.

Advertisement. Scroll to continue reading.

Who is fooling who? The banking sector in Zimbabwe is a sham. At this rate, in a few weeks, the formal financial system will be crippled. I foresee a liquidity crunch, USD cash will be difficult to access from banks, USD RTGS movement among banks will be distrusted, banks do not trust USD RTGS from RBZ as of today!

@ReserveBankZIM we await your statement on this matter on the way forward.

Adding to the growing turmoil, banks have also deactivated MasterCards for international use. This sudden move has left customers who relied on these cards for overseas transactions and online purchases stranded and unable to access their funds. The consequences of this decision are far-reaching, raising concerns about Zimbabwe’s ability to participate in the global economy and exacerbating fears of an impending liquidity crunch.

The absence of a response from key figures in the government has further intensified the unease among citizens. David Coltart, the treasurer general of the opposition CCC party, directly addressed Finance Minister Mthuli Ncube, demanding answers about the collapse of the Zimbabwean dollar and the restrictions on NOSTRO payments. Writing on Twitter, Coltart said,

“My questions for @MthuliNcube today are:

Advertisement. Scroll to continue reading.

1. Why aren’t you commenting on the precipitous collapse of the Z$?

2. Why aren’t you commenting on apparent instructions given by some banks to restrict the use of Nostro payments?

“There is chaos in the financial sector & you’re silent.”

Shingai Ndoro, a concerned citizen, expressed worry about the impact of the notification from banks on civil servants and government contractors, who heavily rely on NOSTRO payments. The announcement has raised a red flag, prompting speculation about the government’s response and its plans to address the situation.

The circular sent by the banks to their customers, which has sparked significant concern, reads as follows:

Advertisement. Scroll to continue reading.

“Information No.64 /2023 Convenience Banking 8 June 2023

Local NOSTRO Card for International Use — Urgent Deactivation

We advise deactivation of the following platforms/products with immediate effect:

      • Direct load from customers’ NOSTRO accounts to the D4lasterCard Prepaid card EITHER by electronic means via the OBDX platform or manual transfers through the branches.
      • Use of the MasterCard debit card product, inclusive of all MasterCard Debit Card products, that is Gold, Classic, and the Business Debit Cards.
      • DSTV payment via the Mobile Moola platform, the USSD Code •220#.

Branches and all customer interacting touchpoints must take note of these developments and comply with immediate effect, taking cognizance of the following:

      1. All deposits/loads/re-loads to the MasterCard prepaid card product must strictly be EITHER cash OR proceeds of an incoming Telegraphic Transfers (TTs).
      2. No manual transfers must be processed from the customers’ NOSTRO accounts to the MasterCard Prepaid card, going forward unless the transfers are cash or ‘backed’, with rigorous checks and balances being carried out.

Please be guided accordingly, update your e-database, and note that a separate circular to enhance/strengthen the control environment required in the processing activities will follow.”

As the Reserve Bank of Zimbabwe is being called upon to address the situation and provide much-needed clarity on the way forward, citizens anxiously await an official statement.

The future of Zimbabwe’s financial system hangs in the balance, emphasizing the urgency for the government and regulatory bodies to swiftly tackle these concerns and restore confidence in the banking sector.

Advertisement. Scroll to continue reading.

Failure to do so may result in a further deterioration of the country’s financial stability, compounding the hardships already faced by Zimbabweans.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Catch More Updates Below