Banks to use FNB, Afrexim for international clearance

THE Bankers Association of Zimbabwe says most local financial institutions are expected to opt to use an African gateway created at South African Bank, FNB and Afreximbank for international clearance.
The development comes as Zimbabwe has, over the years, been deserted by several correspondent banks.
According to the Reserve Bank of Zimbabwe (RBZ), the country has lost an estimated 102 correspondent banking relationships over the last decade owing to the country’s high-risk profile.
Correspondent banks provide services to other banks, usually in a foreign country, acting as an intermediary, facilitating wire transfers, conducting business transactions, accepting deposits and gathering documents on behalf of another bank.
In a recent interview, BAZ president Lawrence Nyazema told The Financial Gazette that an African gateway has been created at FNB in South Africa, of which Zimbabwe is one of the pioneers.