Mangwana: Banks Lied Nostro Accounts Didn't Have USD, Causing Mass Withdrawals

The Permanent Secretary of Information, Nick Mangwana, has claimed that some banks lied that NOSTRO accounts did not have United States dollars (USD) and that triggered mass withdrawals by depositors.

BancABC and FBC Banks were accused of limiting cash withdrawals and prohibiting certain transactions, but they later dismissed the reports as fake. Mangwana‘s comments are believed to refer to the earlier statements by the banks in which the restrictions were announced. In a Twitter post seen by Pindula News, Mangwana said:

A “Bank Run” is when a large number of depositors simultaneously try to withdraw their funds from banks immediately. This is what was caused by the recklessness of a couple of banks which for reasons best known to themselves lied that what was in the Nostro accounts was not USD. Stop It!

Fadzayi Mahere, Citizens Coalition for Change (CCC) spokesperson, responded to Mangawa’s post saying it was confirmation that banks had actually issued the statements which they later denied. She said:

So those bank notices were not fake news? Thanks for confirming. Citizens, we are in trouble.

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Tinashe Murapata, an economic blogger, disagreed with Mangwana’s comments, stating that banks were attempting to prevent mass withdrawals contrary to his claims that they triggered them. He said:

You’re not helping the situation perm sec (Nick Mangwana). Banks are actually trying to avoid a run but for reasons known to you, you are inflaming the situation. The problem with propaganda here is that depositors have a right to their money. They’re not being irrational considering what has happened this last few weeks. The message from GOZ is to calm the waters and NOT play politics. Perhaps start by actually sharing the data of what is in the system. What we have is end of March. We are now June. Nobody cares to communicate the real time truth. I implore you, on these sensitive matters to communicate with empathy or to keep quiet. Remember most people keep their money under mattresses because they don’t trust GOZ. Therefore, what are you communicating with this tweet? Other than withdraw your money from banks quickly….

Banks are attempting to prevent a run on their institutions by limiting cash withdrawals and prohibiting some transactions. This is intended to ensure that there is enough cash to meet the demand of depositors and to prevent a situation where everyone tries to withdraw their money at once, which could lead to a collapse of the banking system.

However, the imposition of restrictions on cash withdrawals and certain transactions has caused widespread panic among depositors. Some individuals who were contemplating depositing their money have refrained from doing so since they were not sure they would be able to withdraw whenever they want to. 

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