Full RBZ Letter To Banks, Summary: We Have Been Robbed

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Central Bank Zimbabwe, Harare, Samora Machel Avenue, Regulators, tallest Building Zimbabwe, Reserve Bank of Zimbabwe RBZ FIntech Africa Sandbox

Below is the letter to Bank CEO’s from the Reserve Bank of Zimbabwe regarding the re-introduced Zim dollar and the banning of forex


Dear Sir/Madam,


  1. Introduction

1.1          Reference is made to the Reserve Bank of Zimbabwe (Legal Tender)Regulations, Statutory Instrument 142 of 2019 issued by the Minister of Finance and Economic Development and the Press Statement announced by the Governor of the Reserve Bank on 24 June 2019 on Strengthening the Interbank Foreign Exchange Market. In order to operationalize these measures, Authorised Dealers are advised as follows: –

Removal of the Multi-currency System

2.1       Authorised Dealers are advised of the discontinuation of the multi-currency system with effect from 24 June 2019. All domestic transactions shall now be settled in Zimbabwe dollars, the sole legal tender in Zimbabwe which is represented by bond notes and coins and electronic currency i.e. RTGS dollars.

2.2      Effectively, the use of foreign currency to settle domestic transactions has been removed and the basket of multi-currencies, that is, USD, GBP, ZAR, EUR, BWP, JPY, CNY, AU$ and Indian Rupee shall only be used to settle international payments or those services exempt from this requirement as per Section 3 of Statutory Instrument 142 of 2019.

2.3   Similarly, the pricing on all domestic contracts, including the displaying of prices in all outlets in Zimbabwe, shall be effected and/ or displayed in the local unit of account.

3. Administration of Foreign Currency Accounts

3.1     Authorised Dealers are advised that the operation of Nostro FCAs shall remain in place for purposes of receiving offshore funds and to facilitate foreign payments. The following Foreign Currency Accounts shall remain in operation;

3.2 The Nostro FCA (Domestic) was funded from local foreign exchange transactions. In view of these new policy measures where the Zimbabwe dollar shall be the sole legal tender, existing Nostro FCA (Domestic) shall be allowed to receive deposits up to 30 June 2019 to enable account holders to deposit their cash holdings realised from trade undertaken before 24 June 2019.

3.3     In cases where local service providers e.g. transporters, consulting firms, etc,are paid from offshore sources for services rendered locally, such funds shall continue to be deposited into the Nostro FCA (Domestic).

3.4       Funds in all these accounts listed in Table 1 above will retain their foreign currency status and shall continue to be utilised for the settlement of international transactions. In cases where the holder of such an account intends to settle domestic transactions, they shall be required to liquidate their foreign currency account balances to the interbank on a willing seller willing buyer basis.

4. Foreign Currency Cash withdrawals

4.1      Authorised Dealers are advised that unconditional authorization for foreign currency cash withdrawals by corporates has now been removed. However, withdrawals by the same on deserving cases such as road toll fees are now permissible only on a case by case basis subject to the application of Know Your Customer (KYC) and Customer Due Diligence (CDD) principles on the withdrawer. These principles to be applied should be in line with Anti-Money Laundering and Counter Finance of Terrorism AML/CFT regulatory requirements and best practice.

4.2       Authorised Dealers are reminded of the limit of export of cash in person or baggage which remains at US$2 000 per exit as per Exchange Control Directive RS119 dated 04 August 2017.

4.3     For individuals, the current policy shall remain in force with Authorised Dealers also required to apply the usual KYC and AML/CFT standards.

5. Administration of Legacy Debts

5.1      Authorised Dealers are hereby directed to transfer to the Reserve Bank, all RTGS Dollar balances in relation to legacy debts registered with the Reserve Bank in fulfillment of Exchange Control Directive RU28 dated 22 February 2019.Measures to Enhance the Interbank Market

6. Retention Thresholds and Period for Export Receipts

6.1.1           Authorised Dealers are advised that the retention thresholds for export receipts and tobacco and cotton offshore loan drawdowns shall remain in place as previously communicated under Exchange Control Directive RU28 dated 22 February 2019. For ease of administration, the retention thresholds are restated as follows;

6.1.2          Authorised Dealers are also reminded that the retention period within which an exporter is entitled to utilize their retained export receipts remains within 30 days from the date of receipt. As per Exchange Control Directive RU28 dated 22 February 2019, all unutilized balances shall after the 30 day retention period, be offloaded into the interbank market at the prevailing market exchange rate and reported to Exchange Control on the Daily Return on Interbank Trading Transactions.

6.2 Foreign currency for the interbank market

6.2.1       In order to enhance interbank market trading, Authorised Dealers are advised that the Reserve Bank shall sell 50% of the export retention due to the Central Bank to the interbank market. Letters of Credit shall continue to be utilised for importation of essential commodities that include fuel, cooking oil and wheat.

6.3 Removal of US$10,000 limit on Bureaux de Change transactions

6.3.1  In order to deepen the operations of the interbank foreign exchange market and to enhance the operations of Bureaux de Change, with effect from 25 June 2019, Bureaux de Change are now permitted to buy and sell foreign currency without any limit in terms of the amount.

6.4 Removal of the 2.5% Margin for Interbank Market Transactions

6.4.1         Exchange Control advises of the immediate removal of the 2.5% margin on foreign exchange trades in the interbank market which was previously communicated under Exchange Control Directive RU80 dated 22 May 2019.

7. Payment of Small Scale Gold Producers

7.1     Authorised Dealers are advised that the current gold marketing framework for small scale gold producers shall continue to apply. For those small scale gold producers with Nostro FCAs, the funds shall not be subjected to the 30 day retention period.

8. Payment of Large Scale Gold Producers

8.1      Authorised Dealers are advised that the current payment arrangements for large scale gold producers shall continue to apply and the retention thresholds have remained the same as previously communicated by Exchange Control in Exchange Control Directive RU28 dated 22 February 2019.

9. Administration of Nostro FCAs for Tobacco Growers

9.1 In terms of Exchange Control Circular Number 5, dated 16 April 2019, tobacco growers are entitled to receive part of their sales proceeds in United States Dollars, deposited into their Nostro FCAs.
9.2 Authorised Dealers are advised that this arrangement shall continue and the accounts shall continue to be administered as per the current arrangements, where tobacco growers are paid 50% of sale proceeds in foreign currency into their FCA. However, in the event that the tobacco grower intends to meet local obligations, the sale proceeds must first be converted to Zimbabwe Dollars through the interbank foreign exchange market.

10. Treatment of Offshore Loans Drawdowns for Financing Tobacco Production

10.1 Authorised Dealers are advised that tobacco merchants shall retain 100% of funds drawn down for the purpose of financing tobacco production.
10.2 Where there is need for disbursement of working capital to the contracted farmer, the proceeds shall be deposited into the grower’s Nostro FCA (Special) which can be opened with a bank of their choice. The tobacco grower shall then liquidate the proceeds from the Nostro FCA (Special) to meet local obligations.

11. Administration of Payments to Cotton Growers

11.1 Authorised Dealers are advised that the current cotton marketing arrangements shall continue to operate.

12. Downstream Payments by Exporters

12.1 Authorised Dealers are advised that the operation of transitory accounts shall be maintained. These accounts are, however, not transacting accounts, but shall be used for distribution of export proceeds to respective downstream beneficiaries.

12.2 In order to maintain or operate transitory accounts for exporters, Authorised Dealers shall seek prior Exchange Control authority.

12.3 In light of the above, Authorised Dealers are advised that producers who sell their produce for consolidation for export e.g. fresh cut flowers and macadamia nuts shall be eligible to access their foreign currency through the Special FCA framework. Funds in these accounts, shall be utilised for the settlement of international transactions. In cases where the holder of such an account intends to settle domestic transactions, they shall be required to liquidate their foreign currency account balances to the interbank on a willing seller willing buyer basis.

13. Review of Export Documentation charges

13.1 In order to promote ease of doing business and reduce cost of export, Authorised Dealers are advised that all export documentation shall be available free of charge.

14. Trading of Dual Listed Shares

14.1 Authorised Dealers are advised that with effect from 25 June 2019, any investor who shall purchase a dual listed share on the Zimbabwe Stock Exchange (ZSE) shall only be allowed to sell the share on the ZSE or on an external stock exchange after a vesting period of ninety (90) days from the date of initial purchase.

14.2 For investors wishing to uplift dual listed shares from external bourses for purposes of selling the shares on the ZSE, such sales shall only be allowed to be executed after a period of ninety (90) days from the date of registration on the ZSE.

14.3 For investors who have already acquired dual listed shares on the ZSE and are desirous of disposing of such shares, Exchange Control directs that such sales can only be allowed in instances where the shares have been purchased on or before 20 March 2019.

14.4 The procedures for trading in dual listed shares on the ZSE as previously communicated by Exchange Control on 26 May 2016 shall remain operational.

15. Disbursement of International Remittances

15.1 In order to encourage and facilitate the flow of foreign currency, diaspora remittances shall continue to be received in foreign currency. The recipients shall have the option to receive remittances in cash or sell their remittances on a willing seller willing buyer basis to Bureaux de Change and Authorised Dealers or deposit into Individual Nostro FCA.

16. Exchange Control Returns

16.1 Authorised Dealers are reminded of the need to ensure compliance with this Directive and to continue submission of Exchange Control Returns as required. Non-compliance with any of the afore-stated provisions is a violation of the provisions of Section 5 (i) and (ii) of the Exchange Control Act (Chapter 22:05) which require persons to comply with, among others, the terms or conditions of any permit, authority, permission, direction, notice, order or other instrument made or issued under or by virtue of the Act.

17. Please be guided accordingly.

Yours Faithfully

C. Tembo

Acting Director


Cc: Head Exchange Control Head Treasury


  1. Rory

    What does this letter mean in simpler terms?

    1. Normalcy

      Tell is techzim where have we been robbed ndapota.

  2. Uhuru

    Ooooh, now you can’t simply withdraw your USD in Nostro. You get them as Zim Dollars at their determined rate. Why in Zimbabwe? This scares away investors.

  3. ssconlinestore

    They are worsting energy focusing on petty issues. To address the real crisis being faced by our beloved country, they know what must be done.

  4. Sagitarr

    I’d rather keep my forex than “deposit it” into a bottomless pit….or provide it to runners in hard cash to keep my business running, more like hobbling!

  5. Kat

    Shouldn’t you have added a summary with your opinion on how you think we got robbed? From the literal meaning of the letter, i can still get my funds in FCA accounts, i just cant use it to transact in Zim. But we all eager to get opinions of various individuals. At this point guys this article is just click-bait.

  6. Zvidzai

    Clear and quite straight forward. This is not unique to Zimbabwe. Go to any country and try using USD in a shop where USD is not their local transactions legal tender. You can not, they advise you to first convert to local unit at banks or Bureaux de Changes. One would then use local unit for transactions in that foreign country. Go to neighboring Botswana or South Africa with your USD and try buying from ShopRite, Pick n Pay or any other supermarket. They will not take your USD. They will indicate that you first go and convert to local unit. SO WHAT’S THE CLAMOUR ABOUT THIS BEING DONE IN ZIMBABWE!!!

    1. Tinashe Nyahasha

      The clamour is because we have to import essential stuff for ourselves for example bandages (true story for my family). Comparing ourselves to SA is erroneous. We just can’t do certain things because they are being done elsewhere when our circumstances are completely different.

      Without forex my family wouldn’t have been able to import bandages for my less than 2 years old nephew. That is the reality of our situation and there are cases that are worse than this.

      The same people who want to control our forex are failing to do so for fuel imports, and basic food imports. They can manage to hire expensive jets though

      1. Anonymous

        You can still deposit hard currency in your pre-paid mastercard or FCA account and go buy your bandages using that

        1. Anonymous

          are you sure??

        2. Nicholas Nangisai

          Not entirely true. The limit for pre-paid mastercards is USD200 a day, meaning you cant even purchase an air ticket online. Secondly transfers from an FCA account can take months, i have suffered this personally despite having an audited import record since 2011. Also our bank charge exorbitant fees and rates in addition to Mthuli’s 2 percent. Do you know my bank charges usd30 monthly fee just for upkeep of my Private Banking account? So the safest way to make sure you can any “proverbial” bandages at this point is keep the USD at home. This government has failed to create a safe and enabling environment for real currency.

    2. Masvingo Zimuto

      Don’t even compare Zimbabwe and SA. The two may be neighbors but the way the countries are run is totally different. ShopRite in SA can access foregn currency in the bank. Don’t worry time will tell. Here we are not talking about 2months. The worst you have never experienced in your life is coming. Debating with people who are connected to the individuals connected to Government officials is a waste of time.

    3. Anonymous

      Other countries use real money not bond paper..

  7. Anonymous

    This is very clear and normal but the headline is misleading, stop abusing social media

  8. Mukanya

    Which ever way it is its robbery in broad daylight!!

  9. Net14lif

    Sorry boss you can still pay for bandages in RTGS.. just convert your USD.i know for a fact that I was getting drugs in bond for my surgery and the pharmacies were charging USD…we both got from the same supplier… So why kill the patient… I’m getting a good reputation and they are going down… How can you charge 2usd when the cost is 1 bond.. Let’s at least stop the USD pricing… You buy at 12 but charge the customer 13… You go to UK… You convert dollars to pound at a fee

  10. Anonymous

    This is how I see it from past experiences
    Say you got US$10k in your FC ACCOUNT and want to purchase a car in Japan from be4wad
    You do your rtgs application as normal
    3 days later u told your payment was not processed because they are reserving n channelling the forex to critical sectors that Is their trips to bali

    Or say you want to order car parts for your spares shop from Dubai, ul be told payment Dido t go through, we reserving the forex to pay import fuel, knowing fuel is a trip by private jets

    So u stuck k with your cash n can’t get a product

  11. Anonymous

    The problem being faced by Zimbabweans is of leadership. and good governance. banning of foreign currency does not improve anything if we have corrupt leadership from the top. Some people fear to killed by honestly the President of Zimbabwe was in government since 1980 and changed many ministerial posts.and was only out of government for two weeks. he has individual is also prone to corruption. which means he cannot stop it since he is involved. M. Ncube as minister since he commences his duties he leaving in a hotel enjoying tax payers money
    if we flash back why was multi currency introduced in Zimbabwe? Does it mean we had now resolved the problems which was faced by the country of by Zimbabwe as nation.
    chigandanga hachishandi pa economy. Zanu sholud stop bulldozing its policies hazvishandi izvi.

  12. Anonymous

    Thank you RBZ tanga tanzwa nemamoney changers neretailers. It will work. We want our currency.

    1. Anonymous

      you have your currency now let’s see…
      You brought USD to replace ZWD excepting it to stabilize the economy
      11 years later You bring ZWD to replace USD expecting it to stabilize your economy 😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂 YOU ARE GOING BACK TO 2006,20007,2008… SOME 3 YEARS LATER YOU WILL REPLACE YOUR RTGS WITH USD OR RAND AGAIN .. MARK MY WORDS

  13. Ziiiii

    Thank you RBZ tanga tanzwa nemamoney changers neretailers. It will work. We want our currency.

  14. Anonymous

    I agree, give us our own currency, it doesn’t matter if the entire world wont accept it at least it will be ours and we will have prosperity.

  15. Litiwas Nesto

    Most people don’t know that the multiple currencies especially the usd wasn’t good for our country.even those Zimbabweans who earned the usd they only externalised it. It was not there to be used in Zimbabwe. Right now Zimbabwe owns the world bank a lot of usd that has been externalised already. The country borrowed the money for the people of Zimbabwe to use but different people came to take out the money from Zimbabwe, so let see if our rtgs and the bond are going to be externalised.

  16. Gilbert Marebe

    I think those with access to fired are bitter coz the obtaining set up was good for them. But as a nation its not all of us who have that privilege and for that reason the recent statutory instrument is in the national interest. It cant be a government that maintains a system that works for only a few whilst the majority cannot afford anything. That will surely be akin to the segregation that we faced under Ian Smith or a clear case of economic apatheird. If it doesn’t work at least it was an attempt to help the majority cope with a difficult situation so its a job well done.

  17. Chibwe

    Zvese zviri bhoo but ,Employers
    must also consider employees before crying.

  18. Anonymous

    All I can say is that I’m just gonna wait and see tione zvinosvikepi, there nothing new nor shocking to us anymore in this Zimbabwe of ours chero chauya chauya kwatiri zvese zvangonyama

  19. Danisa Ndlovu

    To the people of Zim. The finance minister seems to have started on working on the country with the people in mind. So patience is king. Up next is the pricing factor??….???

  20. Lawrence Jongi

    Corruption is killing our country, even if this is a good move, it will not yield the correct goals as intended. May God have mercy on us. Corrupt tendencies will always find a weak spot.