Reserve Bank of Zimbabwe (RBZ) suspended two microfinance institutions, Cash-Twenty-Four (Private) Limited and Crediconnect (Private) Limited for engaging in illicit foreign currency activities.
RBZ Governor Dr John Manguday, in a press statement, says the suspension of the institutions’ operating licences is with immediate effect, pending further investigations.
“The Bank is in possession of information showing that the two institutions have been engaging in illicit foreign currency transactions, which have been adversely affecting the economy,” Mangudya says.
“If found guilty, the institutions will be liable to further regulatory action, which could result in cancellation of licence and/or criminal prosecution.”
RBZ suspends the two financial institutions after the US Dollar gained against Zimbabwe’s local currency.
The US Dollar, which was at around ZWL$35 to US$1 went up to ZWL$45: US$1.