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RBZ Shifts Goal Posts On Foreign Currency Accounts Nostro Withdrawals

The Reserve Bank of Zimbabwe has changed its stance on withdrawals from the Foreign Currency Accounts (FCA) Nostro Accounts for individuals.

A few days after saying that individuals could withdraw up to US$1 000 per day from their FCA accounts, the central authority has now changed its tune, saying that Cash Withdrawals can only be made by individuals who intend to settle foreign costs.

If individuals want their money but do not have proof that they will be travelling outside the country, they will receive the money as Zimbabwe Dollars at the prevailing rate instead.

In an update on their social media page, the central bank said: An exporting entity that wishes to pay salaries in foreign currency from their export receipts, will need to seek prior Exchange Control approval.

The salaries are payable into the individual foreign currency accounts, which are treated as free funds.

Payment of salaries in foreign currency
Under the newly announced policy measures, salaries for NGOs remain payable in foreign exchange where funding for such NGOs, International Organisations, is from offshore.

In cases where the holders of such funds intend to settle domestic transactions, the funds shall be liquidated at the prevailing interbank market to facilitate payments in ZWL, which is now the legal tender.

All the other funds remain available to holders of such accounts and the balances can be utilised for purposes of settling international transactions.

Funds currently held in all Nostro accounts will not be subjected to any involuntary liquidations, except in the case of FCA Exports, which are subject to the 30-day liquidation period.

This is a shift from Wednesday’s position when the RBZ said: The current withdrawal limit for individuals remains US$1000 per day.

Individuals are still able to withdraw their cash from their individual accounts and banks are, in line with international best practice, expected to apply the AML/CFT principles.

Further to our Directive, the Reserve Bank wishes to advise that contrary to certain information being circulated on social media, cash withdrawals by individuals are still permissible and the policy position hasn’t changed.

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