RBZ moves in to curb economic malpractices

Staff Reporter

…….as several rogue financial institutions are suspended

The Reserve Bank of Zimbabwe (RBZ) has moved in to curb rampant economic malpractices within the economy with the Bank suspending operations of three financial institutions.

The three institutions namely Metbank Limited, Rolink Finance (Private) Limited and InnBucks, have been accused of causing volatility of the exchange rate which has resulted in the increase in inflation.

In a statement yesterday, RBZ said that Metbank operations had been suspended with immediate effect pending investigations for breach of exchange control regulations relating to foreign currency.

“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. 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 RBZ.

The Bank added that the suspension of Metbank Limited doesn’t relieve it of any outstanding obligations it incurred or had at the time of the suspension of the licence.

According to RBZ, InnBucks was suspended for failing to regularise its operations since November last year. However, the Bank said that the cessation of the InnBucks services meant that customers shall no longer be able to deposit funds into the InnBucks account or transfer the funds to third parties but may redeem their balances for cash or goods at Simbisa Brands (Private) Ltd outlets within a period of 30 days.

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 Bank has since handed to Rolink Finance a penalty of US$120 000 or its equivalence in Zimbabwe dollar for the exchange control violations.

Meanwhile, InnBucks has issued a statement stating that it was engaging with the RBZ to find a quick solution to the current impasse to enable customers to start enjoying the services again.