Staff Reporter
Reserve Bank of Zimbabwe Monitory Policy Committee (MPC) member and economist Mr Percy Gwanyanya has clarified the issue of domestic nostro convertibility after some documents purportedly from some local banks went viral on social media.
One of the banks has since distanced itself from the documents and labelled them fake.
Tateguru Tv compiled what he said:
CLARITY ON DOMESTIC NOSTRO CONVERTIBILITY: SOCIAL MEDIA DOCS PURPORTEDLY FROM BY BANCABC & FBC
1) The two banks with memos circulating on social media purporting non-convertibility of the domestic Nostro have distanced themselves from these memos.
2) They advised they will issue their statements to this effect tomorrow (today)
3) For the record, banking sector forex deposits continue to be dominated by either cash or Nostro balance with Nostro RTGs balances contributing a small fraction of the total Forex Account (FCA) balances
4) As at 15 March 2023 the banking sector FCA balances were as follows; -Total FCA balance- US$1.382bn -Cash at the bank- US$633m -Nostro balance(foreign)- US$664m -Nostro RTGs balances (domestic) -US$85m 5) The domestic Nostro constitute only 6.15% of total FCA deposits.
4) Importantly, forex lending remains within acceptable levels with a loan-deposit ratio of around 60% way lower than RBZ’s acceptable level of 70%. 7) As such there is no risk on domestic Nostro & absolutely no need to panic
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