Zimbabwe

Exchange control

Zimbabwe operated a multi-currency system between February 2009 and February 2019. The Zimbabwe dollar (ZWD) was demonetarised effective April 2009 and was replaced by a virtual currency called the RTGS dollar effective from 20 February 2019. The RTGS dollar was subsequently replaced by a new Zimbabwe dollar (ZWL), which effectively became the country's sole currency on 24 June 2019. This has had a significant impact on the country’s exchange control regulations. This is basically an electronic-based system, as actual cash is in very limited supply.

The Exchange Control Handbook in Zimbabwe is not available to the public; only banking institutions have access to these regulations.

Transactions that involve the transfer of funds to countries outside Zimbabwe are generally subject to bank approval.

There are shortages of foreign currency on the local market, and a priority list has been issued that gives preference to essential imports of goods and services. The non-essential offshore payments (i.e. profit distributions, etc.) have to join a queue at the commercial banks before they are remitted.

A recent innovation has been that persons are able to open Nostro accounts at their commercial banks in which they may deposit foreign currency. The funds in this account may be utilised by the depositor to make offshore payments for various imports. The use of these funds is, however, controlled by the Central Bank.