News / National
Banks shun telegraphic transfers
21 Mar 2018 at 01:23hrs | Views
SOME banks in Bulawayo have completely stopped accepting foreign payment telegraphic transfers submitted by companies, making life unbearable for the companies in the city, Association for Business in Zimbabwe (Abuz), has said.
A telegraphic transfer (TT) is an electronic method of transferring funds utilised primarily for overseas wire transactions.
Abuz chief executive officer, Victor Nyoni told NewsDay that the failure by banks to accept TTs had seen some of the companies in the city facing imminent closure.
"Some banks in Bulawayo have totally stopped accepting foreign payment telegraphic transfers. Some Abuz members are on the verge of closing down factories due to macro factors which squarely are the responsibility of the monetary policy authorities and government at large," he said.
"Businesses, through Abuz, are, therefore, calling for urgent round table engagement between government, businesses and other stakeholders to develop a new currency policy that speaks to the needs of all economic players in the country," Nyoni
said.
Reserve Bank of Zimbabwe governor John Mangudya said the banks doing that were irresponsible and would be reminded to respect the banking public.
"What they are doing is not banking. Banking is about financial intermediation. It's not what we expect them to do. We shall, therefore, proceed to remind such banks to respect the banking public," he said.
Bankers' Association of Zimbabwe (BAZ) president Charity Jinya referred all questions to the association's offices.
"Please call BAZ office or provide the names of banks allegedly not accepting TT payments," she said.
BAZ chief executive office Sij Biyam said he was currently unaware of the allegations.
"In order to respond to your question, can you find out from the Association for Business in Zimbabwe which banks have stopped accepting foreign payments telegraphically. Once I have the names, I will give you our response, as I am currently not aware of this," he said.
Zimbabwe has been facing a biting foreign currency shortage that has seen a backlog in foreign payments.
Monetary authorities have come up with a priority list for the efficient utilisation of the scarce foreign currency.
A telegraphic transfer (TT) is an electronic method of transferring funds utilised primarily for overseas wire transactions.
Abuz chief executive officer, Victor Nyoni told NewsDay that the failure by banks to accept TTs had seen some of the companies in the city facing imminent closure.
"Some banks in Bulawayo have totally stopped accepting foreign payment telegraphic transfers. Some Abuz members are on the verge of closing down factories due to macro factors which squarely are the responsibility of the monetary policy authorities and government at large," he said.
"Businesses, through Abuz, are, therefore, calling for urgent round table engagement between government, businesses and other stakeholders to develop a new currency policy that speaks to the needs of all economic players in the country," Nyoni
said.
Reserve Bank of Zimbabwe governor John Mangudya said the banks doing that were irresponsible and would be reminded to respect the banking public.
Bankers' Association of Zimbabwe (BAZ) president Charity Jinya referred all questions to the association's offices.
"Please call BAZ office or provide the names of banks allegedly not accepting TT payments," she said.
BAZ chief executive office Sij Biyam said he was currently unaware of the allegations.
"In order to respond to your question, can you find out from the Association for Business in Zimbabwe which banks have stopped accepting foreign payments telegraphically. Once I have the names, I will give you our response, as I am currently not aware of this," he said.
Zimbabwe has been facing a biting foreign currency shortage that has seen a backlog in foreign payments.
Monetary authorities have come up with a priority list for the efficient utilisation of the scarce foreign currency.
Source - newsday
