Regulatory Alerts1997-01-01
Bank of Zambia Circular on PTA Travellers Cheques System and Procedures
The Bank of Zambia mandates the immediate cessation of all PTA Travellers Cheques sales by commercial banks and bureaux de change effective 1 January 1997, following a COMESA regional decision driven by declining utility amid economic liberalization. Customers holding cheques purchased before 31 December 1996 retain the right to encash them through authorized agents until 24 January 1997. All proceeds from pre-31 December 1996 transactions must be fully surrendered to the central bank by the same 24 January deadline.
Tel. 228908/22890A20
BANK OF ZAMBIA
P.O. Box 30080 Lusaka
10101
9 January 1997
CB Circular No. 2/97
TO : ALL COMMERCIAL BANKS and BUREAUX DE CHANGE
Dear Sirs
Re: PTA TRAVELLERS CHEQUES SYSTEM AND PROCEDURES
At the Governors annual meeting held in Maputo, Mozambique on 13 - 14 November 1996, the Committee of COMESA Central Bank Governors decided that sales of PTA Travellers Cheques cease on December 31, 1996 in all countries of the COMESA sub-region.
The decision to halt the UAPTA TCs was reached after careful consideration of an independent report commissioned by the Governors last March and carried out by a firm of professional consultants, Coopers and Lybrand. The study established that although PTA Travellers Cheques had been of great benefit in promoting travel and intra-trade in the COMESA region during the pre-liberalisation era, their usefulness and level of utilisation has continued to decline as a result of the liberalisation process now taking place in all the member countries of COMESA.
The guidelines below should be followed regarding cessation of sale of PTA Travellers Cheques:
(i) There should be no more sales by all selling Agents of PTA Travellers Cheques effective 1st January 1997. However customers who would have bought PTA Travellers Cheques before 31 December 1996 will still be able to encash them at selling Agents up to Friday 24 January 1997.
(ii) For all sales of PTA Travellers Cheques made before 31 December 1996, proceeds must be surrendered to the Bank of Zambia by 24 January 1997.
1
Share