Zim central bank suspends licences for two financial institutions

STAFF WRITER

Zimbabwe central bank has suspended operating licences for two financial institutions for allegedly violating the country’s foreign exchange trading regulations.

The Reserve Bank of Zimbabwe (RBZ) governor John Mangudya on Thursday suspended the licence of Cash Twenty Four (Pvt) Limited, a bureau de Change, for trading in illicit foreign currency transactions.

The apex bank also stopped local microfinance firm Crediconnect from operating after also accusing the company of illegally trading in foreign currency.

“The bank is in possession of information showing the two institutions have been engaged in illicit foreign currency transactions which have been adversely affecting the economy,”Mangudys said.

“The suspension of the institutions’ operating licences is with immediate effect.”

He said investigations into the matter has begun and if found guilty the two firms could face prosecution and cancellation of licences.

Last week, the RBZ pegged the exchange rate of the Zimbabwe dollar at ZWL$25:US$1.
On the parallel market, the Zimbabwe dollar was this week trading at ZWL$45:US$1.