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Business Reporter
Standard Chartered Bank Zimbabwe on Tuesday cancelled unrestricted use of the Visa card for payments outside the country, advising its clients to first seek special permission.The move, which follows an earlier ban on local use of both Visa and Mastercards by some banks, reflects a worsening shortage of foreign currency in the economy.
“We regret to advise that we have cancelled automatic use of Visa debit cards outside Zimbabwe with immediate effect,” the bank said in a statement.
“This decision has been taken to ensure the best use of the increasingly scarce foreign currency resources which is disbursed in line with the priority list issued by the Reserve Bank of Zimbabwe if and when available.”
The RBZ priority list gives preferences to payment of imports deemed to be of benefit to the economy and aims to curtail unrestrained importation of fringe goods. StanChart said its clients would have to apply for a “special dispensation” three days ahead of travel if they intend to use their Visa cards outside the country.
“Customers are requested to submit evidence of all the expected expenses to be incurred whilst travelling outside the country,” the bank said.
It said local functions of the debit card however remained unchanged.
A combination of factors including low foreign direct investment and exports, coupled with externalization of the United States dollar, have seen the economy struggling with currency shortages, a situation the government is battling to address.
Online Reporter
Bongani Ndlovu