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Zimbabwe central bank suspends electronic payment system
African Press Agency
October 03, 2008

http://www.apanews.net/apa.php?page=show_article_eng&id_article=76789

Zimbabwe's central bank has tightened conditions for electronic money transfers in a move meant to rein in a flourishing foreign exchange black market, APA learnt here Friday.

According to Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono, the Real Time Gross Settlement (RTGS) payment system was being abused by currency speculators and businesses which pegged their prices at black market exchange rates.

Under the system, illegal currency dealers would transfer funds into accounts held by sellers of foreign currency at rates significantly higher than the official exchange rate.

On Thursday, the "transfer" rate was about one million Zimbabwe dollars for every US dollar traded compared to the official rate of just over 120 Zimdollars to the American greenback.

Businesses took advantage of the distortions and pegged their prices at the "transfer" rate, which meant that prices were adjusted several times a day in line with movement in the exchange rate.

Gono said businesses and individuals would now have to use cheques or debit cards for all non-cash transactions — except for payments to the national revenue authority and other government departments.

The move was expected to temporarily ease pressure on the illegal market exchange rate but only as long as the government comes with new policies that restore confidence in the financial sector.

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