HARARE – Zimbabweans whose salaries are paid in foreign currency are now prevented from making cash withdrawals in the banked currency and will instead get their money as the Zimbabwe dollar.
Any money held in individual foreign currency accounts not utilised within 30 days will now automatically be converted to the worthless local currency, according to a shock new directive by the Reserve Bank of Zimbabwe.
Meanwhile, lawyers said the move was likely illegal and can be challenged.
The directive, issued on Friday, says employees who earn in foreign currency can only withdraw cash where there is a “genuine need” and such requests can only be approved by the central bank.
The foreign currency earners will be allowed to make foreign payments, but an obligation is placed on banks to “ensure that goods and services paid for are fully accounted for…”
The targets of the new directive, which comes as the central bank has been fighting a losing battle to contain illegal foreign currency trading, appeared aimed at employees of non-governmental organisations and multinational companies.
Legal analyst Alex Magaisa said the directive appeared to be illegal.
“It’s a command policy which restricts freedom and constitutes deprivation of property, the legality of which can be challenged in the courts,” Magaisa said.
“This increased regulatory demand of banks’ vigilance will mean more administrative and compliance costs on banks. These costs will obviously be passed on to customers, thereby increasing the cost of banking. When banking is expensive, people avoid it. It affects savings.”
Opposition leader Noah Manyika said the government, desperate for foreign currency, was could soon raid nostro accounts.
“What the RBZ has announced is that it will tiptoe towards outright raiding nostro accounts,” he tweeted, reacting to the latest directive.
