On the back of failing to process international transactions, NMBZ Holdings has announced that it has entered into a partnership with a German bank, ODDO BHF to allow its customers to make international payments and receive money from outside Zimbabwe.
ODDO BHF is an independent Franco-German financial services group, with branches worldwide and a history stretching back over 150 years. ODDO BHF will serve as a correspondent agent of NMB for US dollars and Euros.
A correspondent bank is a financial institution that provides services on behalf of another and as a result, this enables it to facilitate wire transfers, conduct business transactions, accept deposits and gather documents on behalf of another financial institution. So, NMB customers who are having trouble to do international transactions are happy to hear about this latest development.
On announcing their move, NMBZ Holdings chief executive officer Benefit Washaya said:
We are pleased to inform you that NMB Bank has now secured a correspondent agent for USD and EURO clearing with a German Bank, ODDO BHF.
The partnership comes at a time when many banks are struggling to process foreign payments, due to the depleting nostros. This has seen companies failing to pay for imported raw materials, thereby threatening industries.
RBZ has introduced a number of controls to manage the depleting Nostro accounts. The controls have seen many banks scrapping the use of Visa and MasterCard debit cards for local transactions.
NMBZ Holdings says that both individual and corporate customers will be able to make international payments under this new arrangement.
Other local banks can take a cue from NMB’s initiative as it will help their customers to reduce the hassles of making international transactions. Customers have had to miss consuming some products because there were not able to make international payments.
Furthermore, banks have had to restrict Telegraphic Transfers to plug the outflow of foreign currency. In light of that, NMBZ Holdings has reminded users that its United States Dollar account serves only to receive money but not to make telegraphic transfers outside the country. The bank announced:
Please note that the United States Dollar account is currently restricted to receiving funds, therefore, outward Telegraphic Transfers will be facilitated through EURO, Rand, and CNY currencies.