The Sunday News
THE Deposit Protection Corporation (DPC) and the Reserve Bank of Zimbabwe (RBZ) are finalising modalities on compensating Zim dollar account holders whose money was locked in banks that were closed after the country introduced the use of multi-currencies.
Six banks — AfrAsia Bank Zimbabwe, Interfin, Trust Bank, Allied Bank, Capital Bank and Royal Bank — have closed operations since dollarisation in 2009, with DPC charged with compensating their account holders.
DPC public relations manager Mr Allen Musadziruma said they were finalising the matter with the central bank on how to compensate the affected depositors.
“We await finalisation of liaison between RBZ and DPC regarding payment of Zimbabwe dollar balances to depositors of closed banks,” said Mr Musadziruma.
“The payment modalities will be advised to all clients in due course once the discussions have been finalised,” said Mr Musadziruma.
Meanwhile, the Parliamentary Portfolio Committee on Finance and Economic Development and the Consumer Council of Zimbabwe have challenged the central bank to carry out more public campaigns on the demonetisation programme as some people were being turned away by banks when trying to change wrong notes.
Demonetisation entails stripping a currency unit of its status as legal tender.
Speaking in Bulawayo last week, the committee chairman Mr David Chapfika said they were going to advise the RBZ to carry out more public awareness campaigns about the demonetisation process.
“It’s a very complex issue. I saw people saying ‘I went to the bank and I was told we need this money and that one does not qualify’, so there is a bit of confusion. I acknowledge that these are issues which can still be addressed,” said Mr Chapfika during the RBZ Debt Assumption Bill public hearings.
He said he was hopeful that by the time the programme ends, most of the bottlenecks would have been addressed.
“We are still in June and there is still basically over three months to go. This programme will run through to September so if the RBZ notices that there is limited information there is still time for them to do further publication. We are going to bring to their attention that there are challenges that maybe their publicity is not adequate,” said Mr Chapfika.
CCZ regional officer Mr Comfort Muchekeza also added that RBZ did not do much to educate people about the demonetisation programme.
“The RBZ did not do thorough campaigns about the programme. We only saw the posters. The stakeholders were engaged last minute. But since the programme ends in September, everyone would have known,” said Mr Muchekeza.
The central bank is carrying out a demonetisation programme aimed at legally retiring the currency.
Accounts with balances of zero to Z$175 quadrillion will be paid a flat $5 while those with balances above Z$175 quadrillion will be paid the equivalent value after applying the United Nations exchange rate of USD1/Z$35 quadrillion.
Zimbabwe adopted a multi-currency regime in February 2009 to mitigate the challenges of hyperinflation in the economy.
