Published: 30 January 2019

Business has welcomed the Reserve Bank of Zimbabwe (RBZ)'s move to allow payments through the real time gross settlement (RTGS) system for foreign currency account (FCA) holders.

The Ministry of Finance and Economic Development through the RBZ directed all banks to open separate FCAs for their clients such that those who have access to foreign currency can bank it and be able to access it as and when they need it.

This also applies to the business community especially companies that have obligations in other countries who can now deposit their hard currency and be able to get it to pay their creditors.

Now, the RBZ is allowing payments of foreign currency through the RTGS system.

Businessman, Mr Busisa Moyo said the clarification by the central bank allowing them to settle local obligations using foreign currency is a game changer in business as those who can hunt for hard currency will not have to queue for allocations at the central bank.

He further stated that those who earn currency will also be able to access credit lines based on their ability to pay, a development that is inching towards self-dollarization as FCAs are fast becoming liquid and hyper active.

"The clarification by the RBZ that local debt can be settled through RTGS using hard currency is welcome to the business community and this is good because those who earn forex can access it as and when they want it because it is there in their accounts. Also, the settlement of international obligations will not be a problem as we move towards self-dollarisation," he said.

An economist, Mr Morris Mpala implored banks to promote the FCAs and ensure that every banker has it, as well as to lower service charges.

"FCAs are spot on for the turnaround of this economy, so banks must incentivise these accounts by lowering bank charges and putting interest rates that will drain the informal money market and bring to circulation all the money," he said.

The strategy by the Ministry of Finance and Economic Development is fast reshaping the country's financial services and is soon expected to deal with the three tie pricing system which is stifling economic growth and development.
- zbc

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