Zimbabwe central bank suspends licences for financial firms illicit for forex trade

Dr John Panonetsa Mangudya

HARARE – Zimbabwe Reserve Bank of Zimbabwe (RBZ) on Thursday suspended the operating licences of two bureau de changes, namely Crediconnect and Cash Twenty-Four.

The licences were suspended with immediate effect after the apex bank gathered information that the two firms were involved in illicit forex trading that bled the economy.

“The RBZ wishes to advise the public of the suspension with immediate effect ,of the operating licences of Cash-Twenty-Four and Crediconnect (Private) Limited,” read a notice by Reserve Bank of Zimbabwe governor John Mangudya on Thursday.

Mangudya said the central bank is in possession of information showing that the two firms were engaging in illicit forex transactions.

The suspension is pending further investigations- with the worst case scenario being cancellation of licence or criminal prosecution.

Lately, RBZ has tightened screws on the operations of financial institutions to minimise forex leakages that has adverse effect on the fiscus.