Zimbabwe Seeks US Aid in Communicating Sanctions Relief to Banks

Zimbabwe has sought the United States' help in reminding banks that Washington recently eased some sanctions on the southern African nation, writes Business Insider Africa. Zimbabwean officials met with representatives from the US Treasury to convey this request. According to Bloomberg, the delegation is presently in Washington for the Spring meetings of the International Monetary Fund and World Bank.

Finance Minister Mthuli Ncube stated during an online briefing from Washington, "We asked the US Treasury to issue an advisory note to US banks clarifying the lifted sanctions and signaling that Zimbabwe is open for business." In March, the US updated its sanctions program, allowing American entities to reconsider their stance on Zimbabwe. However, sanctions remain in place for President Emmerson Mnangagwa and other senior officials.

Over the past two decades, the Reserve Bank of Zimbabwe estimates that the country has lost over 100 correspondent banking relationships due to perceived high sanctions-related risks. The Bankers Association of Zimbabwe highlighted that lenders in the southern African nation maintain correspondent banking relationships with various banks across different currencies.

Lawrence Nyazema, the association’s president, noted, “The focus is primarily on the US dollar, where establishing direct clearing arrangements with US banks is challenging. Most banks clear US dollars through stronger banks in South Africa and elsewhere.”

George Guvamatanga, Secretary for Finance and Economic Development, emphasized that Zimbabwe's banks have robust mechanisms to combat money laundering and terrorism financing. He cited the country's removal from the grey list two years ago as evidence of adequate controls.