Banks accused of holding civil servants at ransom over Nostro account US dollars

CBZ banks civil servants Nostro US dollars

Secretary for Information Nick Mangwana has called out banks that are forcing civil servants to convert their US Dollars in their Nostro accounts to local currency within banks they bank with.

Some unscrupulous banks are impelling civil servants to liquidate their US$75 within the bank, in the process shamelessly mopping up forex from poor workers.

Ideally, US dollars in Nostro accounts should be either transferred to another account holder, used to purchase goods and services or they can be converted to Zimbabwe dollars.

But it seems banks don’t want to miss out on the profit of converting US dollars to Zim dollars, so they are reportedly forcing civil servant customers to convert US dollars to Zim dollars within banks they bank with.

Cards

As it is, many banks haven’t started issuing Nostro debit cards that customers can use to “Swipe” in order to make purchases. In light of this, Nick Mangwana went on to say that instead of forcing customers to convert their Nostor US dollars, banks should issue debit cards.

Civil servants are supposed to be given cards which they can use in participating retail outlets as they please.

Allowance value

Meanwhile the value of civil servant’s US$75 allowance further decreased after the official exchange rate fell by 4.5% on the RBZ’s Foreign Exchange Auction for the second consecutive week.

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