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Zimbabwe to scrap bank licences for non-compliance in dollar drought
ZIMBABWE's central bank has threatened to cancel the licences of banks and foreign-currency dealers found to have violated new exchange-control regulations aimed at easing a dollar shortage.
Capital flight, money laundering and rising imports have induced the central bank to double its purchases of dollars to $40 million a month, said Central Bank governor John Mangudya.
Zimbabwe, which abandoned its own currency in 2009 because of hyperinflation, trades mainly in US dollars, while the rand and euro are also used.
Lenders limited cash withdrawals from ATMs last month as the country's ailing economy caused supplies of dollars to evaporate.
It also introduced so-called bond notes, which will be equal in value to the dollar, while drawing up a priority list of what can be imported into the country using foreign currency.
"Penalties shall be imposed on those authorised dealers that fail to comply," according to the central bank's directive. The regulator "will not hesitate to withdraw authorised dealership licences," it said.
Zimbabwe, a US$14 billion economy for which mining is the biggest source of foreign currency, has the world's biggest platinum reserves after South Africa and also has chrome, gold and iron ore.
Capital flight, money laundering and rising imports have induced the central bank to double its purchases of dollars to $40 million a month, said Central Bank governor John Mangudya.
Zimbabwe, which abandoned its own currency in 2009 because of hyperinflation, trades mainly in US dollars, while the rand and euro are also used.
Lenders limited cash withdrawals from ATMs last month as the country's ailing economy caused supplies of dollars to evaporate.
It also introduced so-called bond notes, which will be equal in value to the dollar, while drawing up a priority list of what can be imported into the country using foreign currency.
"Penalties shall be imposed on those authorised dealers that fail to comply," according to the central bank's directive. The regulator "will not hesitate to withdraw authorised dealership licences," it said.
Zimbabwe, a US$14 billion economy for which mining is the biggest source of foreign currency, has the world's biggest platinum reserves after South Africa and also has chrome, gold and iron ore.
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