The Reserve Bank of Zimbabwe (RBZ) today suspended three financial institutions: InnBucks, MetBank and Rolink Finance (Private) Limited for violating foreign exchange control regulations.
Metbank Limited has been suspended from operating as an authorised dealer while InnBucks of Simbisa Brands, a quick-service business listed on the Zimbabwe Stock Exchange (ZSE), has also been directed to cease operating its money transfer service, Rolink Finance (Private) Limited, which operated as a bureau de change, has also been suspended from trading after being accused of breaching foreign exchange rules.
“The bank wishes to advise the public that it has, with immediate effect, suspended Metbank Limited from operating as an authorised dealer pending full investigations for breach of exchange control regulations relating to trading in foreign currency,” said RBZ
“Metbank will not be permitted to deal in foreign currency, that is buying and selling foreign currency, and processing international and domestic foreign currency transactions, until further notice,” said the monetary authorities.
The RBZ said the suspension of Metbank Limited’s authorised dealership licence did not relieve the institution of any outstanding obligations it incurred or had at the time of the suspension of the licence.
On InnBucks, the RBZ said last November it directed InnBucks to apply for and obtain necessary approvals to continue offering its service.
To date, the company had not yet regularised the service as directed by authorities, hence the inevitable regulatory intervention by RBZ.
“The cessation of the service means that customers shall no longer be able to deposit funds into the InnBucks account or transfer the funds to third parties,” said RBZ
The RBZ said Rolink Finance had been suspended for breaching the Exchange Control (Authorised Dealers with Limited Authority) Order, Statutory Instrument 104 of 2015 and Exchange Control Circular Number 2 of 2021 issued to authorised dealers with limited authority (ADLAs).
“The suspension of its operating licence does not relieve Rolink Finance (Private) Limited of any outstanding obligations it incurred or had at the time of suspension of the licence,” added RBZ.
“For the said exchange control violations, a penalty of US$120 000 or its equivalence in Zimbabwe dollar has been levied against Rolink Finance (Private) Limited,” said the Reserve Bank.
Meanwhile, a standard loaf of bread now costs more than US$2 after its price shot up by 30% to $345 meaning you now need four $100 notes to get a loaf of bread. This is the reality of the note 2 weeks after it entered circulation.
“The price hike is clear proof that bread manufacturers are not using the official exchange rate and, in actual fact, no one in his or her rightful mind is using that rate,” economist Gift Mugano said.