The Reserve Bank of Zimbabwe (RBZ) has moved to clarify some of the issues raised in the recently-promulgated Statutory Instrument 142 which scrapped the use of multi-currencies in domestic transactions.
Posting on its official Twitter account, 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.
Operation of Nostro Accounts: 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.
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Not to be confused with the global meaning of Nostro Account In Zimbabwe, a Nostro account is the USD foreign currency account held by local customers of banks in the country. The account is essentially a foreign currency account introduced in October 2018 by the... Read More About Nostro Account