Foreign Currency Account holders with Zimbabwean banks – among them units of Standard Bank, Standard Chartered and Nedbank – have expressed apprehension about what they fear could be a run on their funds by the government, as the central bank kicks in new monetary measures.
Chiedza Madzima, the head of operational risk for Fitch Solutions, said Zimbabwe's foreign currency accounts were facing pressure as depositors rushed to withdraw US dollar funds "amid much lower market confidence."
Standard Chartered Zimbabwe last month told local media that "the Covid-19 induced lockdown has resulted in some constraints in cash importation", while some bank chiefs say they have been asked by the central bank to prioritise foreign currency allocations.
They are prioritising those accounts which have cash deposits, and now I am stuck because I cannot access my funds and at the same time I cannot convert into local currency at the official rate, which is much lower," said an FCA account holder at foreign-owned bank in Harare.
Banks such as Stanbic Zimbabwe and Standard Chartered have been touting alternatives to cash withdrawals such as internal transfers, online and mobile application payments for FCA accounts.
