Finance and Economic Development Minister Mthuli Ncube says banks should ensure “transactibility” of the United States dollar Covid-19 allowances for civil servants.
Civil servants and pensioners have been finding it difficult to access the US$75 and US$30 allowances that weree extended to them by Government.
In extending the allowances, the authorities said civil servants could not withdraw hard cash from the banks.
This has limited the usability of the US dollar denominated funds.
Treasury has pointed a finger at banks.
“We have however become aware that some banks have been unwilling or unable to speedily provide adequate facilities and transactional platforms to enable beneficiaries to access the
full foreign currency value of these allowances,” said the Finance Minister today.
Financial institutions have been accused of failing to communicate adequately on the opening of new FCA accounts for civil servants and pensioners.
“A significant number of beneficiaries remain unaware of the existence of these new bank accounts and their terms of operation,” said Minister Ncube.
“Some banks have not made any serious and visible efforts to issue suitable cards and to deploy relevant and adequate supporting point of transaction equipment to enable beneficiaries to use the cards to make payments for goods and services using the foreign currency denominated cards.
“Additionally, electronic platforms for transacting in the US dollar allowances are either absent or inadequate, or information about these is not available.
“As a result, some banks are in effect forcing beneficiaries to liquidate their foreign currency allowances, and imposing several restrictions on the operations of the FCA Nostro FCAs that have the direct and undesirable effect of disenfranchising the beneficiaries.”
Accordingly, the Treasury boss has urged local financial institutions to improve their payment systems to facilitate US dollar transactions.
STANBIC LEADING THE WAY
Last week, Stanbic Bank announced that it had stepped up functionality of Foreign Currency Accounts (FCAs) on their digital banking platforms, in a move that is set to allow customers to take full advantage of the interbank rates being implemented through the introduction of the forex auction system.
Following the Reserve Bank of Zimbabwe’s pronouncement which allows the use of foreign currency for local transactions, the bank took the opportunity to enhance digital banking offerings that allow account holders to facilitate transactions using their free funds with ease.
Stanbic’s Head of Personal & Business Banking, Patson Mahatchi, indicated that the institution anticipates market appreciation of the new auction system as it provides a market regulated approach to determining exchange rates, which will encourage account holders to use their free funds through digital banking platforms at the governed official exchange rate.