banking sector.jpgThe country’s fiscal authorities say at least US$127 million held in offshore accounts has been returned to the country following the directive compelling all banks to repatriate 75% of their offshore balances.

Information from treasury indicates that most banks have complied with the policy directive requiring all banks to repatriate 75% of funds held in offshore accounts with effect from March 1 as part of measures to curb liquidity challenges.

In a telephone interview with ZBC News, Finance Minister Tendai Biti confirmed that most of the banks had complied with the directive, adding that the targeted US$127 million has been met and referred the ZBC News team to the central bank Governor for further details.

Contacted for comment, RBZ Governor, Dr Gideon Gono said he will issue a comprehensive statement on the update regarding the Nostro Accounts this Thursday.

However, economic analyst, Mr. Trevor Jakachira expressed confidence the repatriated funds will help improve the country’s liquidity position.

The country has of late been faced with a liquidity crisis which observers say is a threat to the growth of the economy.

Following consultations with the Bankers Association of Zimbabwe (BAZ), government together with the central bank agreed on the need for the repatriation of funds held in offshore accounts.