The Reserve Bank of Zimbabwe’s Financial Intelligence Unit has revealed that they froze the Nostro (FCA) Accounts of several top hotels. The FIU did not name these hotels but they said that the hotels were using rates of over $1 000 ZWL per 1 USD when converting between USD and ZWL. These hotels were doing this by offering discounts of more than 10% as stipulated by the law.

We have had a special operation against hotels. We had noticed that hotels still remain among pockets of services providers that are still charging rates above $1 000 to $1 200 for US$1. We engage three large hotel groups which were all convert their USD prices to Zimbabwe dollars using unjustified black market rates. We have had to freeze the accounts of those establishments.

Oliver Chiperesa FIU Director-General

A common practice

The rate has been relatively stable compared to the turbulent months of May, June and July thanks to the curtailment of payments to government contractors. However, despite the fall in street rates, a lot of businesses have been charging the same rates they were charging back in August. That has poured water on the government’s efforts to tame inflation and they have zealously clamped on most big businesses who have dared to defy the directive to use the willing buyer willing seller rates.