RBZ warns banks over forex abuse

Golden Sibanda, Senior Reporter
THE Reserve Bank of Zimbabwe (RBZ) has warned it will take punitive action against banks flouting exchange control regulations after noting rampant abuse of nostro (domestic) foreign currency accounts (FCAs).

It was also noted some banks were taking too long to credit foreign currency from proceeds of the sale of tobacco into farmers’ nostro FCAs under circumstances the apex bank wanted to understand.

The RBZ said that banking institutions that may be found to have violated the new and existing exchange control regulations and policies risk strong sanctions that include possible withdrawal of their dealer’s licence.

This comes only days after the central bank ditched its parity policy on the US dollar to RTGS dollar exchange rate with regards procurement or allocation of foreign currency for the importation of fuel into the country.
ALL SHARE

The All Share index closed the week on a positive note adding 4.88 points 3,15 percent to close at 159.74 points. Cassava Smartech gained $0,1109 to end at $1,4103, Simbisa rose by $0,1095 to settle at $1,0000 and Meikles was $0,0600 stronger at $0,7000. Econet went further up by $0,0554 to $1,3860 and Delta was $0,0405 firmer at $3,0000.

Trading in the negative; Old Mutual Limited retreated by $0,0302 to settle at $11,7544, First Mutual Limited dropped $0,0200 to close at $0,1400 and Turnall was $0,0149 weaker at $0,0851. Seed maker SeedCo eased $0,0092 to end at $1,4508 and Innscor was $0,0007 down at $2,0000.