'FCA accounts separation curbs market indiscipline'

HARARE - Government directed banks to separate foreign currency accounts from the bond notes and their associated electronic deposits to curb market indiscipline, Finance and Economic Development permanent secretary George Guvamatanga has told a parliamentary committee.

“The separation of FCA accounts and RTGS accounts was necessary as the singular system was now disadvantaging those with access to free funds, such as non-governmental organisations, exporters and those who receive money from the Diaspora,” he told the parliamentary portfolio committee on Finance and Economic Development.

“Because if you receive US$200 you shouldn’t be forced to rush to spend it because there is nowhere else to keep it or keep it under your pillow because there is no separation.

“So to protect those with access to such funds, it was very important to separate so that there is no confusion.

“...there was an element of market indiscipline that was now starting to creep in and discouraging those with access to US dollars from bringing it into the formal system and we were trying to address that matter by saying let’s separate the accounts under the multi-currency system, which is still government policy as we speak.”

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