Zimbabwe’s commercial banks are under orders to restrict United States
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.The document sent to banks was seen by Reuters.
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.
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.
Economists say the RTGS reform shows promise provided the government makes good on a plan to let the new currency fluctuate.
Finance Minister Mthuli Ncube told
Reuters in an interview that, while the market should determine the RTGS
rate, the government wanted to avoid excessive volatility. However, the
current official rate values the RTGS far higher than on a thriving
black market that many ordinary Zimbabweans use to buy and sell US
dollars.
The central bank has sold small amounts
of US dollars to banks at 2.5 RTGS in recent days, and a currency dealer
told Reuters the RBZ had authorised banks to buy and sell US dollars at
2.5 percent either side of that rate.
Tellers at two banks in downtown Harare said they could help clients make payments for overseas purchases at 2.5625 RTGS, the rate that other banks offered on Monday.
Tellers at two banks in downtown Harare said they could help clients make payments for overseas purchases at 2.5625 RTGS, the rate that other banks offered on Monday.
However, “the RBZ hasn’t given us any U.S. dollars in cash yet,” a teller at a CABS bank branch said.
The central bank sold what it called “seed foreign currency capital” to banks, but the sums in question appear to be tiny. A senior RBZ official told The Standard newspaper around $5 million had changed hands on the interbank market on Friday.
The central bank sold what it called “seed foreign currency capital” to banks, but the sums in question appear to be tiny. A senior RBZ official told The Standard newspaper around $5 million had changed hands on the interbank market on Friday.
Bureaux de change can in theory sell
people U.S. dollars in cash, but they are few and far between and the
central bank directive said some would have to re-apply for operating
licences.
One exchange bureau at the Road Port bus
station in Harare was not selling U.S. dollars in cash yet but hoped it
would start making sales next Monday.
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