Reserve Bank of Zimbabwe (RBZ) Boss, Governor Dr John Mangudya has reinforced his message that only the Zimbabwe dollar is the country’s sole currency and the nation does not have a Nostro currency either.
In an exclusive interview with TechnoMag, Governor Mangudya emphasized how Statutory Instrument 33 of 2019 aided in the misunderstanding of how the local currency was then referred to as RTGS before being subsequently changed to the Zimbabwe dollar and not even the name Nostro pops up in the currency name Change.
Mangudya said he empathised with the people of Zimbabwe, “I empathise with them.”
The Governor said he knew what they were referring to and that he was not bothered adding, “Because I know exactly what they are saying, but for purposes of this conversation, it is local currency, foreign currency accounts and foreign currency.”
Governor Mangudya explained what Nostro is stating,
“Nostro, these are accounts for banks in foreign banks, these are foreign currency accounts.”
Mangudya added, “So, in the foreign currency accounts, we have got foreign currency in those accounts, but we do not have Nostro.”
The RBZ Governor explained, “So, people confuse again the term Nostro.Nostro means our account with you in a foreign bank.”
Mangudya said, “The opposite of Nostro is Vostro, which means their account in our box.”
“So, the term Nostro, what they are referring to because you still remember we had a virtual US dollar and money that was physical money in the Nostro accounts.”