USD Nostro FCA is coming to RTGS if this circular is anything to go by

The Reserve Bank of Zimbabwe is moving Nostro accounts to being settled on RTGS if a circular we have seen is anything to go by.

The circular reads:

CIRCULAR TO RTGS PARTICIPANTS — MULTICURRENCY UPGRADE — ADDITION OF USD ON THE RTGS PLATFORM
We advise that the RTGS platform has been upgraded to include the United States Dollar (USD) to facilitate settlement of USD Nostro FCA transactions. The function is now available in the test environment for testing by participating institutions.
All participants are urged to send test messages end to end and ensure a full cycle of the transaction is completed. Results of the test should be logged immediately on the attached user acceptance testing form and submitted to the Reserve Bank on a daily basis until Friday,01 February 2019.
It is expected that the settlement of USD transactions will commence soon thereafter in the live environment.
Please be advised accordingly.
J. Mutepfa,
Deputy Director, Financial Markets Division — National Payment Systems
28 January 2019

Our thoughts. For many this will mean a closer step to redollarisation as many will prefer settlement in US dollars. Some who saw their Nostro balances suddenly get useless will be wary of a system that allows the USD to be freely traded fearing that should the government feel that it needs to pay for fuel or for someone’s trip abroad, it will just use the balances again.