RBZ Scrap Compulsory Liquidation Of Unused Exports Proceeds
The Reserve Bank of Zimbabwe (RBZ) on Friday reversed a decision to force exporters to sell a large portion of their dollar earnings if they were not used after 60 days.
RBZ governor, John Mangudya, said the bank’s monetary policy committee had agreed “to remove the compulsory requirement to liquidate all unutilised export proceedings after 60 days, with immediate effect”.
Mangudya also said exporters would now have to sell 40% of their earnings to the central bank-run foreign currency auction.
Previously, exporters were obliged to sell 30% but could only keep the rest for 60 days before having to auction it.
Mining companies, which generate the most foreign currency, have been lobbying the government to let them keep their money saying this would encourage more investment.
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The government argues that it needs foreign currency to buy fuel, medicines and food which are all scarce in the country.
Zimbabwe has a huge scarcity of foreign currency, a situation that worsened shortages of fuel, power and medicines in the Southern African nation.
Critics blame the crisis on financial mismanagement and corruption by the government of President Emmerson Mnangagwa.
The government, however, attributes the challenges facing the country to droughts and “sanctions imposed by Western countries” at the turn of the millennium following the chaotic land reform programme.
More: New Zimbabwe