FBC bans forex withdrawals

HARARE- Listed financial institution FBC has banned forex withdrawals as monetary authorities continue to battle parallel market activities that are believed to be fueling the economic meltdown.

Following the introduction of a local currency earlier this year, banks had limited forex withdrawals to individuals and corporates that had a proven record of the source of income.

Meanwhile, as the fight to curb black market activities the monetary authorities have directed financial institutions to suspend all forex withdrawals.

In a circular dated 4 October, commercial FBC management told all its branch managers to immediately stop forex withdrawals to account holders who had been previously given the leeway.

“There shall be no cash withdrawals funded from under these arrangement. However, should there be a genuine need for cash withdrawn from the accounts specific applications should be made to the Reserve Bank and supported by letters written by account holders detailing the reasons surrounding such requests,” read part of the circular.

However, the bank further advised its employees that maintain a register for tracking the funds in the individual NOSTRO accounts and MasterCard to curb abuse and to facilitate liquidation after the 30-day period.

Government is expected to introduce a new currency to curb parallel market activities.

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