Standard Bank's suspension from the foreign exchange market is already causing losses for private and corporate clients. The Bank of Mozambique assured that the measure would not affect clients.

As DW reports, Standard Bank's suspension from the Mozambican foreign exchange market is creating huge losses for customers who receive bank transfers in foreign currency. Although both Standard Bank and the Central Bank of Mozambique have assured that customers would not be affected by the measure, desperation on the ground is visible.

"We are having huge losses as far as that is concerned and it has not been good for the business itself. I mean the management of the institution itself," one of the customers with upsets in the business told DW. "It's a huge inconvenience because I couldn't do the transaction I wanted to do."

There are customers who have been waiting for their liquidity for more than a week, and others don't know what it will be like in the coming days.

The economist from the Center for Public Integrity (CIP) Estrela Charles has conducted a study on the suspension of the bank. And she has no doubt that this measure is hurting customers.

"We already have 'rapport' from many clients, not only individuals, but also companies that have reported some costs. The costs are not only financial, they are bureaucratic, procedural, time, some late payments... These are costs that can really reflect in what is the price that the consumer will have to pay," explains Estrela Charles.

Commercial Banks in Trouble

The economist also stresses that Standard Bank's suspension from the foreign exchange market is also stifling other commercial banks which may cause losses throughout the financial system. "Some commercial banks are not being able to respond fully, quickly and practically to the demand for foreign currency to pay for some products.

Estrela Charles also stresses that "some importing companies are held hostage by some payments.

Standard Bank has a very high share of foreign currency movements in the foreign exchange market in Mozambique. Because of this suspension "the institution is with its reputation well tarnished and it will take some time for this to be resolved and it is not a short time," explains the economist.

He adds that "a year without making transactions on the foreign exchange market is a long time and the companies will not tolerate this time and many of which will withdraw their accounts, their values in order to be able to move".

And Star Charles assures that "the companies need to survive this long and they're not going to wait for Standard Bank to solve all the issues."

The Bank of Mozambique issued on Monday (12.07) a statement announcing sanctions to the Standard Bank's top management such as fines and suspension of its activities.