Zimbabwe asks US to remind its banks that sanctions have been lifted and they are 'open' for business

Zimbabwean authorities have asked the US Treasury to remind banks that Washington recently eased some of its sanctions against the African country and expressed its willingness to establish new trade relations. Zimbabwean Finance Minister Mthuli Ncube said in press statements to Bloomberg: “We have asked the US Treasury to issue a notice to US banks that the sanctions have been lifted and Zimbabwe is open for business.” The request was formalized during a meeting between Zimbabwean officials and representatives of the US Treasury Department, as a delegation from the African country traveled to attend the spring meetings of the International Monetary Fund and the World Bank. The US government updated its sanctions program in March, saying US entities could reconsider their position on Zimbabwe, although it implemented sanctions on President Emmerson Mnangagwa and other senior officials. For its part, the Reserve Bank of Zimbabwe estimates that it has lost at least 100 correspondent banking relationships in the past two decades due to the perception of high risks in the country as a result of the aforementioned sanctions. “The focus is mainly on the US dollar, as direct compensation agreements with US banks are difficult to reach,” said Lawrence Nyazima, president of the Bankers Association of Zimbabwe. Nyazima noted, as reported by Bloomberg, that lenders in the southern African country have several correspondent banks in different currencies and that “most banks are clearing US dollars through other, stronger banks in South Africa and elsewhere.” This request comes after the United States Executive Authority announced in early March the imposition of sanctions on eleven senior officials in Zimbabwe, including President Emmerson Mnangagwa, and three entities, confirming the continued commission of “serious human rights violations” in this African country. The announced sanctions mainly included freezing all assets that individuals and entities subject to US sovereignty may have, in addition to a travel ban.