Zimbabwean bank board dismissed for "illegal currency dealings"
The Reserve Bank of Zimbabwe (RBZ) on Thursday dissolved an entire board and its management of a commercial bank, accusing it of illegally trading in foreign currency, dpa reported.
Announcing the dissolution of the CFX Bank to the media, Gideon Gono the RBZ governor said: "None of them can serve again on a bank board, they have been declared unfit and improper to work in a bank or to sit on any financial institution for the next five years."
It was not immediately clear who would run the commercial bank. Gono said shareholders of the bank were free to appoint a new board and warned other "unscrupulous banks" that they would face the wrath of the law.
Gono accused CFX of diverting money it received from the central bank on Wednesday to illegal foreign currency.
The money includes the new notes which were meant to be unveiled Thursday. In an endeavour to ease cash shortages, the RBZ introduced new denominations of 10 million, 50 million and 100 million Zimbabwe dollars.
Meanwhile, the RBZ has given in to demands by union leaders for the ATM cash withdrawal limit to be increased beyond the current 100- million-dollar-a-week level (around 50 dollars).
With effect from next week workers will now be able to withdraw up to 10 billion dollar a month, if they present their payslip to the bank. From next month they will be able to cash their full salaries.