The RBZ has released the following statement debunking reports that local banks have started separating local USD accounts and international USD accounts.
Read the full statement below:
<blockquote>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
<img alt="" class="alignnone wp-image-184647 size-full" decoding="async" height="2560" loading="lazy" sizes="(max-width: 1811px) 100vw, 1811px" src="https://t792ae.c2.acecdn.net/wp-content/uploads/2020/10/RBZ-statement-on-Multicurrency-scaled.jpg" srcset="https://news.pindula.co.zw/wp-content/uploads/2020/10/RBZ-statement-on-Multicurrency-scaled.jpg 1811w, https://news.pindula.co.zw/wp-content/uploads/2020/10/RBZ-statement-on-Multicurrency-212x300.jpg 212w, https://news.pindula.co.zw/wp-content/uploads/2020/10/RBZ-statement-on-Multicurrency-724x1024.jpg 724w, https://news.pindula.co.zw/wp-content/uploads/2020/10/RBZ-statement-on-Multicurrency-768x1086.jpg 768w, https://news.pindula.co.zw/wp-content/uploads/2020/10/RBZ-statement-on-Multicurrency-1086x1536.jpg 1086w, https://news.pindula.co.zw/wp-content/uploads/2020/10/RBZ-statement-on-Multicurrency-1448x2048.jpg 1448w, https://news.pindula.co.zw/wp-content/uploads/2020/10/RBZ-statement-on-Multicurrency-1320x1866.jpg 1320w" width="1811"/></blockquote>

Pindula News

FULL TEXT: Banks Not Opening "Local USD RTGS Accounts" RBZ

In a move that is set to allow customers to take full advantage of the interbank rates being implemented through the introduction of the forex auction system, Stanbic Bank has stepped up the functionality of Foreign Currency Accounts (FCAs) on their digital banking platforms.
Following the Reserve Bank’s pronouncement which allows the use of foreign currency for local transactions, the bank took the opportunity to enhance digital banking offerings that allow account holders to facilitate transactions using their free funds with ease.
Stanbic’s Head of Personal and Business Banking, Patson Mahatchi, indicated that the institution anticipates market appreciation of the new auction system as it provides a market regulated approach to determining exchange rates, which will encourage account holders to use their free funds through digital banking platforms at the governed official exchange rate. Said Mahatchi:
<blockquote>It is always our objective to meet the needs of our customers and the auction system has provided a more stable way of determining prevailing exchange rates, a move which we think our customers should take advantage of through the use of digital banking platforms which allows them to transact from their FCAs at the prevailing formal competitive rates.</blockquote>
The bank’s digital banking platforms for both personal and business customers, allow for transfers to be made from FCAs to ZWL accounts and payment of bills, all such transactions being processed using the prevailing official rate.
Customers can also perform local USD transactions through interbank or internal transactions, as well as process USD bills such as Dstv subscriptions.
Civil servants have also become beneficiaries of the payments system as they can now access their recently opened local USD accounts on the bank’s mobile and online banking platforms. Commenting on this development, Mahatchi said:
<blockquote>The USD accounts for civil servants are already in place and we have made the process easier for them by enabling these accounts to transact on all our existing digital banking platforms, the most popular being our Blue247 mobile banking service which is USSD based.
Debit cards for these accounts will also be issued to allow customers to transact by swiping on POS machines, and transactions will continue to be processed at the prevailing official exchange rate of the week.</blockquote>
Mahatchi emphasized the Bank’s determination towards continuous innovation around customer needs cognizant of prevailing dynamics.
In that regard, the bank recently launched the Slydepay App which is geared to revolutionize local payment options with the QR code payment option which eliminates contact.
The technologically advanced application allows account holders to pay bills and make in-store purchases on their phone using QR code scanning technology.
Stanbic Bank views the digitalization drive as a futuristic move necessitated by technological advancements that have taken over the sector worldwide.
The Bank is adopting a model adopted by many financial and non-financial institutions in other parts of the world but very few in Southern Africa.
These new banking technologies bring ease of banking to Stanbic’s customers thus helping the institution move to the next level of banking.

Stanbic Steps Up Digital Banking For FCAs

In a circular sent out by the Reserve Bank of Zimbabwe to financial institutions today, the central bank announced that it has not commenced test to have FCA accounts start using the RTGS system.
FCA Account where introduced last year at the beginning of October as an alternative for banking customers in Zimbabwe and the move was widely seen as an acceptance by government that Bond Note and RTGS balances where not equivalent to the US Dollar.
FCAs accounts were however not part of the RTGS or the ZIPIT platform. This is is now changing. Effectively, the meaning of RTGS in general language changes as there will now be RTGS Bond and RTGS FCA.
Here’s the full text:
<blockquote>CIRCULAR TO RTGS PARTICIPANTS — MULTICURRENCY UPGRADE — ADDITION OF USD ON THE RTGS PLATFORM
We advise that the RTGS platform has been upgraded to include the United States Dollar (USD) to facilitate settlement of USD Nostro FCA transactions. The function is now available in the test environment for testing by participating institutions.
All participants are urged to send test messages end to end and ensure a full cycle of the transaction is completed. Results of the test should be logged immediately on the attached user acceptance testing form and submitted to the Reserve Bank on a daily basis until Friday,01 February 2019.
It is expected that the settlement of USD transactions will commence soon thereafter in the live environment.
Please be advised accordingly.
J. Mutepfa, 
Deputy Director, Financial Markets Division — National Payment Systems
28 January 2019</blockquote>
 
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