An impeccable but unconfirmed source informs me that Zimbabwean banks have very recently blocked the use of Zimbabwean-issued cards in other countries. In effect this means there is nothing left in the country’s escrow account.

 

Zimbabwean banks (including the RBZ) are invited to comment further:

 

 

RBZ States That Standard Chartered Bank Cancelling Use Of Visa Is Not Directive From Them

Today [7 February] a notice appeared in the Herald that stated that Standard Chartered had cancelled, with immediate effect, the use of their Visa cards outside Zimbabwe, with clients needing to seek prior approval 72 hrs before departure. This has proved not yet to extend to online payments, though the fear and concern has been that this was a directive from the central bank to effect such measures.

Techzim contacted the RBZ to seek clarity as to whether they had in fact issued this instruction, not only to Standard Chartered, but to all the other banks.

The Central Bank advises that this is an internal measure that the Standard Chatered bank is embarking upon to manage their supply of foreign currency. The RBZ has issued a priority list to banks as to what payments they should prioritise and this most probably is Standard Chartered, who may have noticed that their client’s use of Visa cards are going against that priority list, hence their actions.

Most local banks have not banned the use of cards per se, however, they’ve matched one’s payments and/or withdrawals to the levels that prevail in Zimbabwe. That is, if your bank allows you a daily withdrawal of $100/day, that same limit will prevail when you’ve travelled or are trying to make online payments.

 

In January CBZ bank (and other banks?) suspended the local use of Visa cards:

CBZ to suspend local use of VISA cards, sets new limits for international payments

As of 5 January 2017, all CBZ issued VISA cards will cease to work locally (within Zimbabwe) but will continue to work outside of Zimbabwe for at ATMs, POS machines and any internet related transaction.

Not only will CBZ stop the use of VISA cards locally but it is also set to review the VISA card per day limits for international transactions. The new per day limits are as follows:

• ATM Outside of Zimbabwe: US$250 per day
• POS Outside of Zimbabwe: US$1.000 per day
• Internet Payments: US$ 500.00 per day

This means for local transactions CBZ account holders will have to revert back to using their local Zimswitch cards which Techzim assumed people have always been using or should start using seeing that the RBZ recently reduced transaction costs.

Of more concern is the clear disparity between local and international transactions coming to fold in Zimbabwe, a situation that was not present pre-bond note introduction.

Techzim expects CBZ to do the same thing FBC recently did by making VISA client deposit USD in cash if they want to use their VISA cards internationally, they will most likely suspend any local transfers into their VISA accounts and refuse bond note deposits which go against the public notion that bond notes are on par with USD.

Also, for the CBZ to succumb to “market conditions” is worrying seeing that the bank is long known for its close ties to the Government (which owns 16% shareholding) and upholding its policies and regulations.

Techzim expects to see a lot more Banks follow suit in the coming weeks.

 

RBZ not happy with how Zimbabweans use their VISA/Mastercards

According to a report published in the Newsday earlier today, the Reserve Bank of Zimbabwe has in the past five months (August 2016-December 2016) utilised more than $300 million in current transactions through Visa and MasterCard.

Speaking at the inaugural Gold Sector Awards, the RBZ Governor, Dr John Mangudya stated it was the public’s perception that the RBZ allocates 100% of the foreign exchange in the country when in fact the RBZ is only responsible for 25-30% of the foreign exchange in the country.

The Governor went on to say that VISA and Mastercard use are negatively affecting Nostro accounts in a situation he described as “whilst others are exporting for productivity others are busy using cards”.

The Governor also said the continued usage VISA and Mastercards was contributing to the challenges in adequately allocating foreign exchange funds as they were not going back into productivity.

On Monday, 23 November, Techzim reported that the RBZ and VISA Sub-Saharan Africa had set up a local payment settlement service which will see all local VISA transactions settled by a local authority.

The transactions in question here are the foreign transactions or online transactions being conducted by Zimbabweans using locally issued VISA/Mastercards.

Techzim is yet to establish what the RBZ decision or course of action with regard to VISA and Mastercard foreign use will be, but the comments by the Governor coupled with the introduction of a local settlement service hint at a possible suspension of VISA and Mastercard use for international