The International Air Transport Association (IATA) has directed all Zimbabwean travel agents that all remittances of amounts due to them will only be accepted in United States dollars.

In a circular dated 20 March 2019, IATA said it can no longer accept the use of direct debit as a remittance method in the market.

“Pursuant of the monetary policy statement announced by the reserve bank Governor, with effect from 20 February 2019 and the resulting banking infrastructure and the operating environment alignment charges in Zimbabwe, please be advised that effective immediately IATA can only accept remittances of amounts due in the billing currency of the BSP in Zimbabwe, the United states dollars (USD).

“We also regret to inform you that we can no longer support the use of direct debits as a remittance method in the market effectively today, the service has been suspended and will and will be unavailable until further notice.

All IATA payments shall be in United States dollar and should be remitted via bank transfer or cash,” said the trade association.

IATA is the trade association for the world’s airlines, representing some 290 airlines or 82% of total air traffic.

Due to foreign currency shortages over the past few years, a number of foreign airlines operating the Zimbabwean routes have been struggling to repatriate their monies from the country.

Announcing the Monetary Policy statement last month, Reserve Bank of Zimbabwe governor assured that foreign liabilities and legacy debts would be catered to.

“All foreign liabilities or legacy debts due to suppliers and service providers such as the International Air Transport Association (IATA), declared dividends, etcetera shall be treated separately after registering such transactions with sufficient information that will allow it to determine the roadmap for orderly expunging the legacy debt,” he said at the time.