RBM orders maximum foreign currency withdrawals for diplomatic offices and staff

* Diplomatic offices shall be allowed withdrawal of forex to a minimum of US$15,000 or equivalent thereof in any foreign currency per calendar month for operations

* For the ambassadors and consuls is a maximum of US$3,000 or equivalent thereof in any foreign currency per calendar month

By Duncan Mlanjira

On November 13, 2024, the Reserve Bank Governor, William T. Banda issued orders to authorised dealer banks (ADBs) in which diplomatic offices and their staff can only making maximum foreign currency withdrawals.

In a circular to ADBs in the operational manual for cross border foreign exchange transactions on withdraw of foreign currency, the diplomatic offices shall on application to an ADB holding the foreign currency dominated accounts (FCDAs) be allowed withdrawal of forex to a minimum of US$15,000 or equivalent thereof in any foreign currency per calendar month for operations.

For the ambassadors and consuls holding FCDAs, they are also required on application to the holding ADB be allowed withdrawal of foreign currency to a maximum of US$3,000 or equivalent thereof in any foreign currency per calendar month.

Diplomatic staff other than ambassadors and consuls holding FCDAs shall be allowed withdrawal of foreign currency to a maximum of US$2,000.

The Governor also stressed that ADBs shall maintain all records, documents and account statements relating to withdrawal of foreign currency by diplomatic offices and diplomatic staff for inspection by the RBM.

The order is for embassies, consulates, ambassadors, consuls, attaches and embassy and consular foreign employees.