Commerzbank closes Zimbabwe's nostro accounts

Commerzbank AG has asked local financial institutions to close their nostro accounts with the Frankfurt-based financial services group.

Nostro accounts are foreign currency accounts of a bank opened abroad for settling transactions involving international movement of funds such as exports and imports.

Sources said the local financial institutions have been given notices to move their funds.

Commerzbank is the second largest bank in Germany and the state owns 15 percent stake. Another source said the Commerzbank might be taking a precaution to avoid punishment.

Local banks are required to keep not more than 10 percent of total deposits in nostro accounts.