Correspondent banks exodus gridlock payments: RBZ

THE Reserve Bank of Zimbabwe (RBZ) says the exodus of correspondent banks out of Zimbabwe is behind payment gridlocks confronting exporters and importers.

The central bank estimates that at least 102 correspondent banking relationships have been lost over the last decade due to Zimbabwe’s high-risk profile.

A correspondent bank, which is a third-party financial institution that acts as an intermediary between domestic and international banks, is key to facilitating foreign currency exchange and payments across the world.

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