RBZ Working With Afreximbank To Get US$500 million Nostro Stabilisation To Back  Foreign Currency Accounts

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has said that the fiscal authorities are in talks with the African Export-Import Bank (Afreximbank) to get a US$500 million Nostro Stabilisation Guarantee Facility (NSGF). The NGSF will be used to guarantee customers with Nostro Foreign Currency Accounts that the foreign currency will be available should they need it. This comes after Mangudya ordered banks to separate Nostro foreign currency accounts (FCAs) from the real-time gross settlement (RTGS) deposits.

Said Mangudya,

As a further support to this measure and to provide credit enhancement or deposit protection for the Nostro FCAs, the Reserve Bank is finalising discussions with the African Export-Import Bank (Afreximbank) towards a US$500 million Nostro Stabilisation Guarantee Facility (NSGF) to provide Nostro FCA holders with assurance that foreign currency shall be available when required by the account holders. The NSGF which will be similar to the AFTRADES Facility that guarantees interbank trading in Zimbabwe is targeted to be in place by the end of October 2018.

When bond notes were introduced, Mangudya also said that the bond notes were introduced by a US$200 million facility from the Afreximbank.

Related:

• Download PDF: Mid-Term Monetary Policy Statement By John Mangudya

• Banks Given Two Weeks To Separate Nostro Foreign Currency Accounts And RTGS Deposits