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Zimbabwe Cuts Foreign Exchange Limit For Travellers To US$2,000

6 months agoFri, 27 Sep 2024 12:26:09 GMT
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Zimbabwe Cuts Foreign Exchange Limit For Travellers To US$2,000

The Reserve Bank of Zimbabwe (RBZ) Monetary Policy Committee (MPC) held a meeting on Friday, September 27, to review macroeconomic developments and the economic outlook.

The MPC noted that from April 5 to mid-August 2024, the economy demonstrated relative stability, with an average month-on-month inflation rate of -0.82% from May to July 2024.

However, since mid-August 2024, exchange rate pressures have intensified, as indicated by a widening parallel market exchange rate premium and rising inflationary pressures, according to Central Bank Governor John Mushayavanhu.

Monthly inflation rose to 1.4% in August 2024, with expectations for a further increase in September.

The MPC also noted that foreign currency inflows for the first eight months of 2024 amounted to US$8.465 billion, representing a 13.4% increase from US$7.468 billion in 2023.

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In response to these developments, the MPC decided to raise the Bank Policy rate from 20% to 35% effective immediately, standardize statutory reserve requirements for demand and call deposits to 30%, and increase statutory reserve requirements for savings and time deposits from 5% to 15%.

The MPC also resolved to allow greater exchange rate flexibility to respond to foreign currency demand and to reduce the foreign exchange limit for individuals travelling abroad from US$10,000 to US$2,000. Reads the statement:

The Monetary Policy Committee (MPC) of the Reserve Bank of Zimbabwe met on 27 September 2024 to deliberate on recent macroeconomic and financial developments and economic outlook.

The MPC noted that the economy experienced relative stability in the economy, from 5 April to mid-August 2024. As a result, month-on-month inflation averaged -0.82% for the three months from May to July 2024.

The economy has, however, experienced a resurgence in exchange rate pressures since the second half of August 2024, as reflected by the widening parallel market exchange rate premium, and the increase in inflationary pressures.

Consequently, monthly inflation increased to 1.4% in August 2024 and is likely to be higher for September 2024.

The increase in parallel market exchange rate volatility is despite the increase in foreign currency inflows for the first 8 months to August 2024 of US$8,465 million, reflecting an increase of 13.4%, compared to US$7,468 million in 2023.

To ensure that inflation expectations remain well anchored as well as dissipate current inflationary pressures, the MPC has made the following resolutions:

  • To increase the Bank Policy rate from 20% to 35% with immediate effect.
  • To increase and standardize the statutory reserve requirements for demand and call deposits for both local and foreign currency deposits from 15% and 20%, respectively to 30%. The statutory reserve requirements for savings and time deposits for both local and foreign currency have also been increased from 5% to 15%, with immediate effect.
  • To allow greater exchange rate flexibility, in line with the increased demand for foreign currency in the economy.
  • To reduce the amount of foreign exchange an individual can take out of the country, from US$10,000 to US$2,000.

The MPC is convinced that the above measures will go a long way in addressing the emerging exchange rate risks, anchor the inflation expectations and stabilise prices in the near to short term.

Going forward, the MPC will remain vigilant to any emerging risks to ensure continued macroeconomic stability.

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13 Comments

The Droid tabloid · 6 months ago
$2000thaza ndo mari inobvumirwa world over, and much of transact ma visa debit card, asi pocket mari I 2000thaza kwete 10k iyo, chitsombi chinoitwa
Anonymous · 6 months ago
Logic says, if you can not get money outvof the bank do not put it in there. Expect more money under pillows and also expect more armed robberies.
1
Anonymous · 6 months ago
Mamonya Aya akarehwa nemadzibaba vaya kuMasowe zvichinzi acharwira Zig arikupiko Zig uya zvowogarwa matunduru. Mhanyaiwe Goridhe hevoko! Nezvimwe mhanya iwe Zig uya oda kuurawa.
hoy · 6 months ago
back to SA banck acc 2k is too little
Anonymous · 6 months ago
Gold is going up 👆 😂 so much for our gold backed currency that is losing value... Shame.
E d io t s · 6 months ago
No lasting solution found. No brakes to control the economy its a wasted effort from mugabe to where we are, colours are not quality to change the driver of broken down train brings failure. This train goes nowhere it's not for travelers but for looters corruption captains and bigfish to kill the truth of life. The johns are all cruel gedeon the strategist in killing economy and citizens. 50years now failing to travel 5km of life. It's better to have another war with the new enemy who polishes our lips with oil, We are hungry Weare struggling day and night, The pain we suffer is death
beware · 6 months ago
Many men may feel insecure about their s.e.x organs and search for ways to enlarge them, unfortunately, they may fall prey to fake doctors. This delicate part of the body needs trained professionals to attend to it in an ideal environment. However, a Thai man was caught after 20 years of doing these procedures with no professional training and with only a Grade 9 level of education.
1
Anonymous · 6 months ago
Do it the other water that foreigners must only come with &2000
Sir African · 6 months ago
No African except the late Bernard Chidzero and leonard ,has been able to properly to administer the reserve bank .The rest ran down the economy. Rimai tione,the economy is very sententive and it jumps in terror even if at the sound a leaf falling
ndungezh · 6 months ago
kungotii chamisa huya tavaviwa zvakaitA mugabe 2008 akabvuma defeat
Tambaoka · 6 months ago
Chamisa umboripi
shurushuru · 6 months ago
ko kungobvuma defeat mosiya mobvei

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