The Reserve Bank of Zimbabwe has made a U-turn from the Directive which instructed banks to limit customer’s internal transfers to just 2 per day.
The removal of the Directive means customers can now do more than 2 internal transfer transactions per day.
The Directive was reportedly lifted after the Banker’s Association of Zimbabwe intervened on behalf of its member banks. In a tweet, Happiness Zengeni of Financial Express said:
The Financial Intelligence Unit has revoked a directive issued to banks limiting internal transfer amounts following representations made by the Bankers Association of Zimbabwe. On June 4, the FIU directed all banks to limit internal transfers to just two per day via@FinxZim
Some banks have already started to notify it’s customers about lifting of the ban.
Why was the Directive issued
Each bank customer shall make no more than two transactions per day by way of internal transfer regardless of the values involved. There is no restriction on RTGS transfers but banks should exercise necessary due diligence.
The FIU said internal transfers were being exploited by moneychangers to do their illicit foreign currency trading on the black market. And according to the central bank’s narrative, the black market is the root of all the economic problems that Zimbabwe is saddled with.
Why BAZ intervened
Although customers could still do just 2 transactions per day, they was no maximum amount to transfer for each transaction. In other words, customers could transfer any amount for in each transaction. Still, this had decreased bank’s daily business activity – that is why BAZ persuaded FIU to lift the ban.
Victory for moneychangers?
Obviously BAZ lobbied for the ban to be lifted to serve their interests. Fortunately, this has had a positive externality to moneychangers who now have an opportunity to scale up their operations by doing more internal transfer transactions per day.
It’s somewhat of a victory for moneychangers but if they would have had it their way, they would have preferred the FIU to lift the bans it has placed on the EcoCash platform because that’s where most of their business is.