As the liquidity crunch bites deeper into the country’s economy, banks have stopped making international payments in United States dollars, indicating that they can only make the payments in currencies of the recipient countries
Last week, CABS became the second bank, after MBCA, to advise its clients of the new development.
In a notice sent to its clients, CABS managing director, Simon Hammond, said all cross border payments destined for countries whose currencies are freely tradable on the international foreign exchange markets, would be settled in the currency of the destination/receiving country, effective June 1.
“As such, we will require that all invoices presented as supporting documents for cross border payments be in the relevant currency of the country from which the invoice has been issued. Currencies in this category that we are currently able to clear include USD, ZAR, GBP, EUR and BWP,” the notice said.
“We further advise that payments to Southern African Development Community (SADC) countries, other than South Africa, can also be paid in ZAR through the SADC Regional Electronic Settlements System, which is a more efficient payment system.
“In the circumstances, we encourage you to consider this option for payments destined for the SADC region, by being invoiced in ZAR. The countries that are currently on this regional payment platform are South Africa, Namibia, Zimbabwe, Zambia, Malawi, Lesotho, Swaziland, Mauritius and Tanzania.”
Hammond encouraged the bank’s clients making local payment transactions, to make use of Point-of-Sale machines as well as the mobile and Internet banking facilities. On March 31, MBCA issued a similar notice to its clients, which notice came into effect this month.