By Revesai Mavetera
In the midst of a deteriorating economy and skyrocketing exchange rates, an anonymous banker, using the pseudonym Prisca Mutema to protect her identity, has taken to Twitter to shed light on a concerning trend. She has revealed that companies with foreign currency accounts in Zimbabwe are now liquidating their funds held in Nostro accounts, incurring a significant loss of 15% in order to acquire hard currency.
Prisca had previously warned about the impending money supply issues on November 15th, stating, “Is Mthuli Ncube, Zimbabwe’s Finance Minister, aware of the complicated US dollar balances/deposits money supply scam the Reserve Bank of Zimbabwe is running right now? All calculations show it’s going to explode in Quarter 2 next year. It’s specifically and deliberately designed to hoodwink the Zimbabwe Treasury on money supply/inflation figures.”
Today, Prisca took to Twitter again, referencing her previous warning and sharing the latest developments. She stated, “Today, we had several companies seeking to liquidate their Nostro (US$) accounts on the black market at a 15% discount. Several banks are assisting with this process. For instance, Company A pays Joe Bloggs a US$1 million invoice from their Nostro US$ account. Joe Bloggs, in turn, hands Company A US$850,000 in cash.”
Essentially, the US dollars held in these so-called Nostro accounts are rapidly losing value. Individuals and companies are cutting their losses and exchanging their Nostro funds for hard cash at a 15% discount.
It is worth noting that the companies engaging in these transactions are typically those with the knowledge and ability to anticipate currency developments in Zimbabwe before the general public. They are aware of the impending challenges and are taking proactive measures to mitigate their losses.
For ordinary citizens, the implications of this situation are dire. The US dollars that individuals believe they have in their bank accounts are no longer true US dollars. The process of losing these US dollars has begun. She said.
