RBZ responds to Ecocash as it opens a can of worms. The Reserve Bank of Zimbabwe (RBZ) has filed a notice of opposition in respect of the urgent application for a final interdict made by Ecocash to force the central bank to reverse the ban on some Ecocash Agents.
RBZ had ordered that the suspension of some of Ecocash’ Agents who trade more than $100 000 per day on the basis that they were allegedly participating in illegal buying and selling of the foreign currency.
In the notice of opposition, the governor of the RBZ, Dr John Mangudya said that the effect of the rapidly devaluing exchange rate on the Ecocash Platform is destroying the livelihood of the Ecocash users and the economy of Zimbabwe at large.
He also said that it has been discovered that unlike other electronic e-money platforms, Ecocash does not engage in immediate settlement of payments which means that payments can remain outstanding for periods of between three to seven days, thereby unduly disadvantaging the same people Ecocash claims to be protecting. He said:
What the general public does not know is what happens in the interim. The funds that have not been credited to the vendor or the recipient are then available for trading on the Ecocash Platform in the foreign currency market. In effect, the delays allow a certain person, who was the subject matter of an investigation, to buy and sell foreign currency in the intervening period.
He also attached a schedule confirming that there are some Ecocash agents who have deficit accounts (caused by drawing more money than the account holds) on their Ecocash accounts in excess of $39 million which is outrageous.
He added that Ecocash on this basis had breached the law thereby forfeiting any rights that it has.
Source – Pindula News
In other news – MDC A wins court case as High Court orders govt to pay MDC Alliance within 7 days
MDC A wins court case as High Court orders govt to pay MDC Alliance within 7 days. The High court has provisionally ordered Justice Minister Ziyambi Ziyambi to pay the MDC Alliance led by Chamisa funds from the Political Party Finance Act within 7 days.
Ziyambi has previously said partly will release the money to the Khupe led camp after the Supreme court judgement that declared Nelson Chamisa an illegitimate MDC leader…continue reading.