Harare – Stanbic Bank Zimbabwe, a unit of Standard Bank, has advised its depositors to sign off on new service terms that include accepting transaction settlements in any currency deemed as legal tender as well as to allow the bank to avail cash withdrawal services subject to availability.
by Tawanda Karombo
Zimbabwe’s central bank is carrying out a public awareness campaign ahead of the introduction of local bond notes this month. The bond notes, a local currency said to be backed by a $200 million (R2.68 billion) Afreximbank facility will have equal value to the US dollar on a 1:1 basis.
Banks have been scrambling for a way out of glitches occasioned by the worsening shortage of the greenback, introduced as legal tender – along with other currencies – in 2009.
Now Stanbic Zimbabwe wants its depositors to be aware that cash withdrawals are subject to availability of funds while its banking clients will have to accept any currency deemed as acceptable by authorities.
“The bank reserves the right to pay funds in one or more other currency or currency unit recognised at that time as legal tender,” the bank said in a letter containing updated conditions of service to clients on Monday.
The bank also said it would convert currencies for funds payment using its own rate or that set by the Reserve Bank of Zimbabwe. Uptake of rand and Botswana pula has been low, while most transactions are carried out using the US dollar and banking industry sources say banks will start paying withdrawals in any currency under the multicurrency basket Zimbabwe adopted in 2009.
“We treasure our relationship with our customers and understand that market conditions can often be challenging. This extends to ensuring that the terms and conditions of the accounts we operate are up to date and in line with best practice,” said Joshua Tapambgwa, the chief executive of Stanbic Zimbabwe.
The other updated conditions of service by Standard Bank’s unit in Zimbabwe include acknowledgement by depositors that “a deposit, regardless of the currency of such deposit, may not be immediately available for withdrawal” by account holders. Cash withdrawals, therefore, are no-longer unconditional and are now subject to availability of bank notes.
Stanbic Zimbabwe is among a few foreign banks in Zimbabwe that include Standard Chartered and units of Nedbank, Ecobank and Barclays. Standard Bank said in a recent statement that “Zimbabwe is experiencing a shortage of cash USD notes, not liquidity”, and adding: “Stanbic Zimbabwe has sufficient liquidity, and will not need support from Standard Bank Group.”
Zimbabwean Finance Minister Patrick Chinamasa said this week that the central bank would carry out awareness campaigns to ensure “the public is not duped by fake bond notes that may be circulated” alongside the actual currency.
The government has subsequently promulgated laws under the Presidential Powers dispensation to legalise the introduction of the bond notes. A statutory instrument published this week says the “bond notes issued by the (central) bank shall be legal tender in all transactions” in Zimbabwe.-IOL
