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Govt Compensating Depositors Who Lost Forex Due To Zim Dollar Reintroduction

Govt Compensating Depositors Who Lost Forex Due To Zim Dollar Reintroduction

The government has announced plans to compensate depositors whose United States dollar bank balances were wiped out in 2019 when the Zimbabwe dollar was reintroduced.

Finance ministry secretary, George Guvamatanga, yesterday told NewsDay that depositors with values of less than US$1 000 were already being compensated.

Guvamatanga said the idea was to boost public confidence in the country’s banking system. He said:

We have done a research and people generally don’t have confidence in our banking system because of such issues and you will find that no one will come and say let me compensate my depositors somehow. That’s why the government is stepping in.

Depositors, whose balances were US$1 000 and below constitute the bulk of the beneficiaries. The main thing is to try and have market discipline again and the President has realised that the market has actually gone rogue again.

According to the Reserve Bank of Zimbabwe, total banking sector deposits amounted to $10.32 billion as of December 31, 2018, up from $8.48 billion as of December 31, 2017.

At the time, the banking sector was predominantly funded by demand deposits which accounted for 64.94% of total deposits as of 31 December 2018.

Since the reintroduction of the Zimbabwe dollar in June 2019, deposits have been going down with individuals and companies preferring to keep their huge sums of forex at home or on other premises.

Last week, President Emerson Mnangagwa announced various measures to restore confidence, preserve value and restore macroeconomic stability, which included restoration of lost value on bank deposits with a US$1 000 balance and below as of the end of January 2019

Analysts say the government-created problem will affect efforts to revive the economy since taxpayers’ money will be diverted from developmental issues and be used to refund the depositors.

More: NewsDay; Pindula News


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13 Comments

zOrTiN 1 month ago

Hatichaidi mari yacho isu #VoteCCC


Mᴀʀᴀᴠᴀᴢᴀ 1 month ago

Tʜᴇ Zᴀɴᴜ ᴘғ ғᴀᴛ ᴄᴀᴛs ᴀʀᴇ ɴᴏᴡ ᴀᴛ ᴀ ғɪx ᴀs ᴄɪᴛɪᴢᴇɴs ᴋᴇᴇᴘ ᴛʜᴇɪʀ ʜᴀʀᴅ ᴄᴜʀʀᴇɴᴄʏ ᴏᴜᴛ ᴏғ ʙᴀɴᴋs. Rᴀɪᴅɪɴɢ ᴏғ ғᴏʀᴇx ᴀᴄᴄᴏᴜɴᴛs ɪs ᴏᴜᴛʀᴀɢᴇᴏᴜs , ᴛʜᴇ ʙᴀɴᴋɪɴɢ ᴘᴜʙʟɪᴄ ᴡɪʟʟ ɴᴇᴠᴇʀ ᴛʀᴜsᴛ ᴛʜᴇ ɢᴠᴛ ᴀɢᴀɪɴ. Hᴏᴡ ᴄᴀɴ ʏᴏᴜ ʀᴇsᴛʀɪᴄᴛ ᴄɪᴛɪᴢᴇɴs ᴏᴠᴇʀ ᴛʜᴇ ᴜsᴇ ᴏғ ᴛʜᴇɪʀ ᴍᴏɴɪᴇs ɪɴ ʙsɴᴋs?


@xyz 1 month ago

haunyepe


xyz 1 month ago

the thing is,these zanu pf guys want to compensate themselves,by then our largest denomination was let's say $100 000, their accounts had $100 000x100 000,so that amount converted now surely they are getting a lot of the RTGS considering the new measures they will be the ones with the RTGS which they wish/hope will be on demand & they sell it for the US $ and the game is done.


Gafa 1 month ago

Kkkkk njere shoma dzobaya tenzi nebasa ndozvichazoita vanhu vaise marii mubank hereWotoregwa USD wonzi compensation neZim bond kurwara cchaiko.si chii kusafunga kwemadhara aya here kana kushaya respect kuma citizens


Jah🇿🇼Tsvarie-07 1 month ago

Citizens will never ever trust banks and the robberies in the country says it all, citizens now trust robbers than banks 😀
Noone can trust a country lead by soldiers coz soldiers command policies...


Two Boy 1 month ago

As depositors, we need to be heard and how we think is the best possible solution. How come the gvt just wake up and start talking about compensation without involving the victims.


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Two Boy 1 month ago

This is an admission of guilty. Depositors with less than US$1k implies that government wants to compensate for only one month. Yet, since the 1-1 exchange rate period depositors were losing their forex. The government is not serious and we know what it is up to.

So-called compensation, if paid in local currency, will be an insult to depositors.


Machiavelli 1 month ago

ZANU yaona moto neNMB (National Mattress Bank). Noone has trust in this government's Yo-Yo policies. Now people keep their US$ in NMB, where Mangundya and Ncube cannot touch it.
NB Lumumba lost US$300,00
Pari Doctor wad relieved if substantial USDollars
Airport security girl and US$2million
Even if you compensate past losers, noone will ever trust these guys. NMB wins hands down and government/RBZ get DOLOLO.


Observer 1 month ago

The banks and government cannot be trusted. Once trust is lost its hard to get back. Once bitten twice shy.


Ex bank user 1 month ago

True, when banks abuse you and restrict you from using your money, don't bank.

chipo 1 month ago

vazhinji vakatofa zvavo


Mai chimuti 1 month ago

Zvinofambiswa seyi??? were the deposits ringfenced, someone enlighten me in simple terms.



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