Categories: Stories

Confusion over who will compensate Zimdollar depositors whose banks collapsed

Zimbabwe’s central bank chief John Mangudya says the Deposit Protection Corporation will compensate Zimbabwe dollar accounts that were held by financial institutions that closed post dollarisation as the apex bank moves in to restore confidence in the financial services sector.

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.

The Reserve Bank of Zimbabwe last week demonitised the Zimbabwe dollar, effectively 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.

“They will go through the administration unit such as the Deposit Protection Corporation. The DPC, which has all the records, will ensure that those who had money in their accounts will be given their money,” Mangudya said in an interview.

He said the Reserve Bank had created a three-month window to compensate depositors ending in mid-September in anticipation of an overwhelming response from the public. He added that most funds were being held in bank accounts as Zimbabweans ditched the local unit for stable currencies due to runaway inflation, which peaked at 500 billion percent in December 2008.

DPC chief executive John Chikura, however, said the issue would be handled by the central bank.

“That is a question that the Reserve Bank is handling. They are the ones who are acting on behalf of government. But they are being naughty because they are referring people to us without communicating with us how we are supposed to deal with this issue,” Chikura said.-The Source

(243 VIEWS)

This post was last modified on %s = human-readable time difference 9:08 am

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024