ZB Financial Holdings Limited (ZBFH) is now able to carry out international financial transactions after it was removed from the United States sanctions list recently.
BY VICTORIA MTOMBA
The group’s head of corporate services, Shadowsight Chiganze said the bank was now working on re-opening its nostro accounts to allow it to tap into offshore funding and the Diaspora market, a key area in mobilising financial flows.
A nostro account is an account held by a local bank in a foreign bank, denominated in the currency of that country.
“There is already work underway to resuscitate our correspondents’ network both existing and new ones. Once nostro accounts are set up, we should be able to assist our clients in conducting international business, like any other bank. With nostros, there will be sufficient funding in the accounts,” he said.
ZBFH was not able to open nostro accounts due to the US sanctions and had to rely on other banks for international transactions.
The bank could also not import cash directly like others.
Chiganze said the bank will now focus on stakeholder awareness, forging local and foreign strategic partnerships as well as restoration of operational capacity, and there has been progress in that regard.
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Reserve Bank of Zimbabwe governor, John Mangudya, in his recent monetary policy statement, increased the threshold for securing offshore loans to $20 million from $10m, which do not need prior exchange control approval.
He said banks would still be required to register all such loans in the usual manner with the central bank.
ZB Financial Holdings, Chemplex and Zimbabwe Fertiliser Company and Industrial Development Corporation were removed from the US sanctions list early this month.
