, 7 tweets, 4 min read Read on Twitter
1.Some of our readers are saying they still don't get it. Here is a simpler version: Until now you could not pay for anything locally straight from a USD nostro account - you had to withdraw USD cash first because there was no mechanism to transfer locally like you do with RTGS.
2. So zvikafamba mushe with this new system, you will be able to pay for services or goods with USD via transfer. If a bed is being sold in a store for USD200 you should be able to get their account number and transfer it to them. (And hopefully also swipe USD in the near future)
3. Present situation was that if you wanted to pay for something in USD and you bank with X bank but the one you are paying banked with Z bank - you could only withdraw cash then deposit in their account at their bank. So it's a good thing. Convenient, logical. It seems.
4. The only worry is how the clearing works in the long run. How the money actually moves. The average person isn't too keen on @ReserveBankZIM handling their money. The mechanics supposedly don't need them to. Cash would stay with the banks. The fear is garnishing - kubirwa s3.
5. Those who do work for NGOs or other companies and charge USD will "hail" this move. Consultants that charge double digit figures can get their dues paid with no issue. Till now you waited until your client's bank had the cash, enough for them to withdraw and pass on to you.
6. This move though would be a good step in the direction of dollarization infrastructure. Enabling full movement of proper dollars in Nostro FCAs never mind their source, deposit, transfer or funds from outside - local spending becomes easy, convenient. Encourages multi prices
7. Costs though are another worry. Most banks charge 1-1.15% on nostro FCAs with no IMT - the 2%.
It would be atrocious to charge the 3% we have now on RTGS transactions above $10. But this is #Zimbabwe. We wait for details, hopefully from the coming Monetary Policy Statement
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