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The Reserve Bank of Zimbabwe (RBZ) says foreign currency deposits in the banking sector increased by 433% between 2018 and September 2023.
Speaking at the Zimbabwe Independent Banks &amp; Banking Survey and Awards ceremony in Harare last week, RBZ Governor John Mangudya said foreign currency deposits were US$300 million in 2018, and by the end of September 2023, had risen to US$1.6 billion. The <a href="https://www.newsday.co.zw/theindependent/local-news/article/200018314/foreign-currency-deposits-rise-433-to-us16-billion">Zimbabwe Independent</a> quoted Mangudya as saying:
<blockquote>
Confidence in the banking sector improved significantly as depicted by growth in foreign currency deposits from around US$300 million in 2018 to US$1.6 billion as of the end of September 2023.
The banking sector has demonstrated resilience and strong performance with all banking institutions recording profits.
Banking sector performance indicators compare favourably to international benchmarks.
Financial inclusion reached 83% driven largely by digital financial services, about 95% of local currency transactions are conducted through electronic payment systems and mobile transactions account for 80% of total volume of transactions highlighting its significance in promoting financial inclusion.
</blockquote>
Official data shows that the United States dollar is now the dominant currency in the economy with 80% of domestic transactions being conducted in the greenback.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Foreign Currency Deposits Rise 433% In Five Years - RBZ

The Government on Thursday, 05 October gazetted Statutory Instrument 164 of 2023 which stipulates that bank accounts in Zimbabwe of those listed by the United Nations of suspected terrorist activities will now be frozen without delay by the Director-General of the Reserve Bank of Zimbabwe Financial Intelligence Unit.
The Statutory Instrument, gazetted by Home Affairs and Cultural Heritage Minister Kazembe Kazembe, reads in part:
<blockquote>
IT is hereby notified that the Minister of Home Affairs and Cultural Heritage has, in terms of section 17 of the Suppression of Foreign and International Terrorism Act [Chapter 11:21] and with the consent of the President as required under subsection (2) of that section, made the following regulations…
(2) Where the Ministry of Foreign Affairs receives Notice of United Nations list of any addition, removal or other amendment made to the current United Nations Consolidated List of designated persons, it shall forward the updated list to the Unit without delay.
(3) Upon receipt of the list from the Minister of Foreign Affairs in terms of subsection (1) the Director-General shall, without delay—
(a) and without giving prior notice to any named individual or entity, make an order, freezing the funds and other assets that are—
(i) owned or controlled by the designated person or entity, and not just those that can be tied to a particular act, plot, or threat of proliferation;
(ii) wholly or jointly owned or controlled, directly or indirectly, by designated persons or entities;
(iii) derived or generated from funds or other assets owned or controlled directly or indirectly by designated persons or entities;
(iv) for persons and entities acting on behalf of, or at the direction of a designated person or entity; 
and
(b) make public notice (for the notification of all persons) as the Director-General may determine and disseminate or cause to be disseminated to every competent supervisory authority, financial institution, designated non-financial business or profession, the name of the designated person or any entity known to be owned or controlled directly or indirectly by any person or entity designated by the UN with the order to freeze, accompanied by a directive to—
(i) implement preventive measures to counter the flow of funds or other assets to proliferators or those who are responsible for weapons proliferation;
(ii) report back to the Director-General any funds or other assets frozen and any other action taken 
in implementing the order and directive.
</blockquote>
(4) On receipt of an order or public notice of an order in terms of subsection (3) by the Director-General every person, financial institution or designated non-financial business or profession must freeze any funds or other assets known to be owned or controlled directly or indirectly by any person or entity designated by the UN without delay, and without prior notice to any designated person or entity.
(5) An order to freeze funds or other assets shall remain in force and not lapse until such entity or person has been removed from list of designated persons by the UN.
(6) For the avoidance of doubt the process from receipt of list from the UN by the Minister of Foreign Affairs to issuing an order to freeze by the Director-General and to freezing of funds and other assets by financial institutions or designated non-financial businesses or professions must happen in not more than twenty-four (24) hours.”
<blockquote>
3. The principal regulations are amended in section 9 (“Procedure for freezing of assets”) by the—
(a) deletion of subsection (3) and the substitution of the following— “(3) The Unit shall circulate the lists of designated persons to the financial institutions, designated non-financial businesses or professions or other persons via electronic or surface mail directing them to identify targeted funds or other assets of the listed individuals or entities.”;
(b) insertion after subsection (7) of the following subsection— “(8) The Director-General shall through 
electronic or surface mail issue guidance to financial institutions, designated non-financial businesses or professions or other persons to facilitate the effective implementation of these regulations.”
4. The principal regulations are amended by the insertion after section 11 of the following section— 
“Monitoring and ensuring compliance by financial institutions and designated non-financial businesses or professions
11A. (1) The Unit, in cooperation with competent supervisory authorities, shall monitor and ensure compliance by financial institutions and DNFBPs with the relevant provisions of these regulations and any other relevant laws by adopting the following measures—
(a) issuing clear communication and procedures for—
(i) designation or listing;
(ii) freezing or unfreezing;
(iii) delisting;
(iv) granting exemptions for individuals and entities subject to targeted financial sanctions relating to the proliferation of weapons of mass destruction;
(b) outreach and training;
(c) issuing guidance, directives and circulars.
(2) Any competent supervisory authority may, after consultation with the Unit, develop such rules and guidance and disseminate such information to all its members for the purpose of achieving the objectives of the Act.”.
5. The principal regulations are amended in section 12 by the insertion of “without delay” between “shall” and “report”.
</blockquote>
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RBZ To Work With United Nations In Suppressing Terrorist Activities

The Tourism Business Council of Zimbabwe said that they are not involved in the externalisation of foreign currency and urged the Reserve Bank of Zimbabwe (RBZ) to understand how they operate.
The RBZ recently granted a moratorium to all operators, who have unregistered tourism agreements and unapproved offshore accounts to regularise the agreements and offshore foreign currency accounts with the central bank before the end of this month.
The Hospitality Association of Zimbabwe (HAZ) said the regularisation of unapproved offshore accounts and unregistered agreements will control tourism leakages and pave the way for accurate reporting on the tourism satellite account.
However, Tourism Business Council of Zimbabwe president Wengayi Nhau told <a href="https://www.newsday.co.zw/thestandard/business/article/200015846/tourism-operators-react-to-rbz">The Standard</a> that they are not involved in externalisation. Nhau:
<blockquote>
For argument’s sake, we have a client in Europe or the United States who wants to go on holiday.
Then on the other end, we have a destination management company (DMC) that is, in most cases, based either in that particular destination within the country or they operate remotely.
And then you have what we call a travel agent and a tour operator.
The DMC is more like the supply chain manager. It consolidates all services, manage everything on the ground.
The tour operator provides a service of taking people for the tours.
The travel agent does packaging in conjunction with the tour operator and the DMC.
The travel agent is back in the source market; in this case, it’s in Europe or the United States.
The travel agent then contacts the local ground handler, which is the DMC in the case of Zimbabwe and asks for services which include accommodation, tours, and safari activities, and they are given a quotation based on the rates that we have got locally.
</blockquote>
Nhau further explained that when the travel agents in Europe or the United States check all the costs; they put their own mark-up which the local operators have no control over.
He added that if there is an intermediary between the overseas client and the regional client, they also put their mark-up. Said Nhau:
<blockquote>
I might be dealing with the South African operator, who would be dealing with the Canadian operator or American operator.
I give a quotation to the South African operator who put his mark up and give it to the overseas operator who also put their mark up.
What they transmit and remit to Zimbabwe is only what I’ve invoiced and we have no control over all other things.
So, the bone of contention that has been happening is that with the RBZ and Zimbabwe Revenue Authority in some cases they’ve attempted to also factor in the difference between what the agents have collected and what I have charged.
We have what we call special tour operators rates. These are contract rates.
When I book accommodation as an agent in Zimbabwe I get it at less 20%, 15% or 10% depending on what negotiations we have done and when I pass on to this operator, I also give him maybe less 10% or 5% whichever. He puts his mark-up.
So, what then the authorities are thinking is that the difference between what we have quoted here and what the client has paid, they take that as externalisation.
Since these are contracts and as you know we are dealing remotely, people feel secure and safe to pay after the service. In the case of agents and operators, they prefer to pay one invoice.
</blockquote>
He said where the money is paid into the Zimbabwean account, they also collect payments on behalf of other downstream operators who are outside Zimbabwe’s jurisdiction.
He said when they receive this bulk payment into the country, they should then be able to forward the payment and keep it as a deposit until the time the payment is due we transmit it. Said Nhau:
<blockquote>
Our exchange control regulations are very inconsistent to the extent that people no longer feel secure holding the money for a longer period here because even if we have an account that allows you to hold payments in foreign currency, they have up to 90 days that you must have used that money.
But in a lot of cases, we hold deposits for 6, 12, 18, 24 months or beyond.
As we speak, we are running activities and services for payments that were deposited prior to COVID-19 that were interrupted by the pandemic, but where there is that extended control requirement that we must liquidate payment, we become handicapped.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

We Are Not Involved In Externalisation - Tourism Operators

The Reserve Bank of Zimbabwe (RBZ) has used its lender of last resort (LoLR) facility to bail out three banks that had run out of liquidity.
The RBZ did not name the distressed banks.
LoLR is a facility in which a central bank provides loans or liquidity to financial institutions when they are facing severe financial difficulties and cannot obtain funds from other sources.
It is one of the primary functions of a central bank.
In the 2023 mid-term monetary policy statement, RBZ governor John Mangudya said that the three banks ran out of liquidity due to a significant amount of money being taken out of the market. He said:
<blockquote>
The month of June 2023 saw significant depreciation of the exchange rate which coincided with the second quarterly payment date (QPD) for corporate taxes.
Significant liquidity was withdrawn from the market through the QPD and most banks saw their liquidity levels dwindling, resulting in three banks approaching the bank for support through the lender of last resort facility.
The outstanding amount under the LoLR facility was $32.5 billion as of 14 July 2023.
</blockquote>
Bankers Association of Zimbabwe (BAZ) told <a href="https://www.newsday.co.zw/business/article/200015370/rbz-bails-out-3-banks">NewsDay</a> recently that the sector was not having any liquidity challenges. It said:
<blockquote>
Lending in USD is limited to what is available, considering that foreign currency is a scarce resource.
Banks can only lend what is available, taking into consideration the ability to repay in foreign currency.
Therefore, lending in forex is limited to those with the capacity to generate forex revenue.
In terms of viability, the financial sector is safe and sound, as depicted by all the financial indicators as published in the 2023 monetary policy statement.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

RBZ Bails Out Three Distressed Banks

Finance and Economic Development Minister Mthuli Ncube has said the assumption of the Reserve Bank of Zimbabwe (RBZ)’s external debt by Treasury will make budget financing for the 2024 fiscal year difficult.
On 15 June, President Emmerson Mnangagwa issued Statutory Instrument 108 of 2023 which authorised Treasury to take over RBZ’s external debt.
<a href="https://www.newsday.co.zw/business/article/200015330/rbz-external-debt-gives-treasury-headache">NewsDay</a> reported that this was done to prevent the central bank from printing money to service its debt but since the promulgation of the statutory instrument, Treasury has acquired $7.69 trillion worth of debt accrued by the RBZ between December 31, 2022 and end of May.
The 2024 budget strategy paper released by Treasury last Friday reads in part:
<blockquote>
Government’s financing requirements are expected to remain under pressure during 2024 on account of the takeover of the central bank’s external obligations, growing informalisation and the need to sufficiently provide for NDS1 (National Development Strategy 1) programmes and projects during the medium term.
However, the government’s commitment to maintain the budget deficit within the 3% of GDP (gross domestic product) threshold will be critical in managing inflationary pressures and restoring stability in the economy.
</blockquote>
Ncube said economic growth was expected to remain positive as it was projected at 5.3%, 5.2% and 5% for 2023, 2024 and 2025, respectively, well within the NDS1 growth targets. He said:
<blockquote>
Government measures in support of macroeconomic stability, coupled with the drive towards structural economic transformation, value addition and beneficiation, are expected to sustain this positive growth trajectory.
</blockquote>
He added that increased electricity generation from the Hwange Thermal Power Station and investments by independent power producers will further boost economic activity during 2024.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Treasury Frets Over RBZ External Debt

The Zimbabwe dollar significantly recovered for the second time in a week, trading at ZWL$5 739 to the USD at the Reserve Bank of Zimbabwe (RBZ) Wholesale Foreign Exchange Auction on Thursday, 29 June.
On Tuesday, the local currency firmed against the United States Dollar to ZWL$6 326, from ZWL$6 926 on 20 June.
On Thursday, the RBZ said eight (8) bids were submitted by banks and all the bids were accepted but only four (4) were allotted cash.
According to the RBZ, US$20 million was on offer and just under US$3 million was allotted.
Commenting on the development, journalist Hopewell Chin’ono said the Government has taken out local currency liquidity so that there are few Zimbabwe dollars to buy the US Dollar. He added:
<blockquote>
This is an electioneering ploy that will backfire spectacularly.
The regime won’t let the local currency float freely because it will expose the lack of the required economic fundamentals!
</blockquote>
Chin’ono said as of Friday, 30 June, the street rate was around ZWL$8 700. On Tuesday, Chin’ono said:
<blockquote>
It is like denying food to a person with diarrhea, and then celebrating when they go to the toilet less than they did before.
You haven’t treated or cured the problem, you have simply denied the patient food, therefore there is nothing to excrete.
So what happened to the Zimbabwean dollar to firm up today? Many people are asking how this is possible.
Firstly, the central bank @ReserveBankZIM has taken out the Zimbabwean dollar liquidity in the marketplace. 
Hakuna RTGS muma streets.
Therefore the market is short of the Zim Dollar to buy the auction US dollars. 
So the movement of the rate is artificial and manipulated!
Shortage of the local currency does not mean that importers and their business enterprises have stopped working.
It just means that they are preferring to use their UD dollars to import goods.
The exchange rate is determined by the auction floor rate.
According to the central bank, auction forex only serves 13% of the total import bill of Zimbabwe. 
87% is sourced elsewhere.
Can the central bank sustain its liquidity crunch? No, it can’t and it won’t!
WHY? Because Government contractors haven’t been paid including parastatal contractors like ZUPCO who rely on government payments.
If contractors are paid, they will flood the Black Market looking for US Dollars and the local currency will crash again.
That is why I said in my opening remarks that the patient has not been cured, they simply starved the patient and are celebrating that artificial response.
Civil servant salaries were last adjusted when the rate was at Z$1,500 against the US Dollar.
But most crucially, big exporters are not getting their export surrender Zim Dollar payments too.
The government has decided to roll over these payments creating a Zim Dollar backlog.
A time will come when all these Zim Dollar payments will flood the market, that time the local currency will crash again.
Do not be fooled by election tinkering of the exchange rate.
The market is fast dollar rising, preferring to use US Dollars instead of Zim Dollars because Zimbabwe is officially under hyperinflation.
Even the official blended inflation rate month-on-month inflation rate is at 74%.
This in economics classifies Zimbabwe as hyperinflation.
This is the second time it has happened in five years.
Things will only improve when there are serious structural changes in Zimbabwe’s economy and politics and not piecemeal tempering with the exchange rate.
In Nigeria, the central bank Governor was suspended for this, and the forex market was liberalized.
In Zimbabwe, the appointing authority has no appetite for doing the right thing.
As Zimbabwe’s most recent successful Finance Minister, Tendai Biti reminded us in his dramatic terminologies, Ingori Kiya-Kiya Economics!
</blockquote>
<img alt="Image" decoding="async" src="https://pbs.twimg.com/media/FzpNIHNXsAAPk2n?format=jpg&amp;name=large"/>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe Dollar Recovers For A Second Time In A Week

The Reserve Bank of Zimbabwe Financial Intelligence Unit (FIU) said that retailers and manufacturers who were exclusively charging certain goods in foreign currency and using the street market rate for currency conversion have agreed to reconsider their pricing models.
In an interview with <a href="https://www.sundaynews.co.zw/16-bank-accounts-frozen-in-rbz-price-blitz-overpricing-shops-penalised/">State media</a>, FIU director-general Oliver Chiperesa said that the Unit has received assurances from retailers that they will adjust their prices in line with the prevailing official exchange rate while also accepting Zimbabwe dollars for all products. Said Chiperesa:
<blockquote>
We engaged with them and they have assured us that they are relooking into their pricing models.
Yes, some had items that they were not allowing clients to pay for using the local currency, but we have told them that is not acceptable and they agreed to rectify it.
They also assured us that customers will be able to pay in local currency for all goods whose prices have been marked in foreign currency only.
</blockquote>
He, however, said there were still some rogue businesses who they continue to monitor to ensure that they were brought to book.
Chiperesa gave an example of one supermarket in Belvedere, Harare, saying it had a rate higher than the parallel market. He said:
<blockquote>
On Friday we found out that this supermarket was using an exchange rate of US$1:ZW$10 000 which has no relationship with even the parallel market.
So it is just a rate they came up with as forward pricing just to destabilise the rates because the most extreme parallel market rates were 8 000, but they are beginning to go down.
</blockquote>
Last week, the RBZ set the official exchange rate at US$1: ZW$5 900 while the street rate was hovering at US$1: ZW$9 000.
However, some large retailers were using at least US$1: ZW$10 000 for selected products while popular fast-food outlets were rejecting the local currency on the pretext that their point-of-sale machines were not working and therefore could not accept swipe and EcoCash payments.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Shops Agree To Sell Products In ZimDollars At The Official Rate - RBZ

The Reserve Bank of Zimbabwe Financial Intelligence Unit (FIU) says it has frozen additional bank accounts of companies and individuals for allegedly participating in fuelling the exchange rate on the parallel market.
Speaking to <a href="https://www.sundaynews.co.zw/16-bank-accounts-frozen-in-rbz-price-blitz-overpricing-shops-penalised/">State media</a> on Saturday, FIU director-general Oliver Chiperesa said that penalties for the offenders will be issued to them this week. He said:
<blockquote>
This past week we also froze an additional six bank accounts of traders who were also violating the regulations relating to the prescribed rates that must be used by traders and penalties will be issued to them this week.
The penalties are usually in the form of fines and as we said before repeated offenders will end up being recommended for cancellation of their trading licences.
We have also frozen the accounts of 10 individuals and companies who were involved in the parallel market.
They are not necessarily traders but they are companies in various sectors as well as individuals whom we traced their transactions and found that they were participating in fuelling the exchange rate on the parallel market.
Again, we will issue them with penalties in the course of the coming week.
</blockquote>
Chiperesa claimed that the black market rate is now starting to stabilise in response to measures and policies announced by the Government over the past few weeks. He said:
<blockquote>
We have witnessed that for the first time in the last five or six weeks, the black market rate is now starting to stabilise because of the effectiveness of the policies that have been put in place which we are supporting as the FIU by making sure that those who destabilise the foreign exchange are dealt with severely in terms of the law.
</blockquote>
On Friday, the street rate was hovering around ZWL$9 000, while the official rate last week stood at US$1: ZW$5 900.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

RBZ Freezes Six More Bank Accounts For Exchange Rate Violations

The Monetary Policy Committee (MPC) has announced measures to deal with exchange rate and price volatility in the economy. Below is the statement in full:
<blockquote>
RESOLUTIONS OF THE MONETARY POLICY COMMITTEE MEETING HELD ON 6 JUNE 2023
The Monetary Policy Committee (the MPC) of the Reserve Bank of Zimbabwe (the Bank) met on 6 June 2023 and deliberated on macroeconomic and financial developments in the economy.
The MPC also deliberated on the progress made in the implementation of measures announced by the Honourable Minister of Finance and Economic Development on 11 May 2023 and 29 May 2023, respectively, to address the recent volatility in the exchange rate and prices of goods and services in the economy.
The MPC noted that the prevailing volatility in the exchange rate emanated from both supply and demand side factors.
The supply side factors reflected the transitory reduction in foreign currency inflows, while the demand factors reflected the sustained value-preservation demand for foreign currency in the economy.
In order to complement the measures announced by Government, the MPC resolved as follows:
Supply Side Measures
The following measures shall be implemented to address supply side foreign currency constraints:
i. With effect from 7 June 2023, the Bank shall sell foreign currency at the market-determined exchange rate through banks to support and strengthen the foreign exchange interbank market, and banks shall in turn sell the foreign currency to their customers. This measure is calculated to ensure that the interbank forex market is the primary source for foreign exchange needs in the economy and that the foreign exchange auction system shall continue to operate for meeting smaller requirements for foreign payments and for continuous price discovery. Thus, in order to ensure that the interbank forex market is self-financing the 90-day liquidation requirement on export proceeds will fall away.
ii. The current interbank maximum trading limits shall be reviewed upwards from US$100 000 to US$500 000, consistent with the current auction limits;
iii. The main and MSME auction will be merged under the US$5 million per week policy, with bid limits of a minimum of US$1 500 and a maximum of US$50 000; and
iv. The trading margins charged by banks on foreign exchange transactions will be aligned with international best practices.
Demand Side Measures
To address the demand side factors, the MPC resolved to adopt the following measures:
i. Increasing the Bank policy rate from 140% to 150% per annum, in response to the recent increase in inflation;
ii. Increasing the Medium-term Bank Accommodation (MBA) interest rate from 70% to 75% per annum; and
iii. Increasing the Statutory Reserve Requirements on local currency demand and call deposits from 10% to 15%, while maintaining savings and time deposit requirements at 5%.
The Bank remains committed to continuing with the current tight monetary policy to restore and sustain the exchange rate and inflation stability.
The issuance of gold- backed digital tokens to augment physical gold coins as a value preservation instrument has gone a long way in mopping up excess liquidity from the market.
To date, the Bank has sold to the market ZW$31.8 billion and ZW$35.2 billion worth of gold coins and gold-backed digital tokens, respectively.
The rolling out of digital tokens for transactional purposes in the second phase, which is projected to commence during the month of June 2023, will buttress the current stabilisation measures.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>
</blockquote>

FULL TEXT: Monetary Policy Committee Announces Measures To Tackle Exchange Rate Volatility

The Reserve Bank of Zimbabwe (RBZ) has no control over the ever-rising black-market exchange rate according to the central bank’s senior payment systems analyst, Howard Tundu.
Tundu made the remarks while speaking at the Consumer Education and Awareness Campaign hosted by the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) at Jerera Growth Point in Zaka, Masvingo Province. He said:
<blockquote>
As RBZ we cannot control what people do outside the official rates where they have their rates which they use for payments. We are only concerned about the Zimbabwe dollar.
</blockquote>
But Africa Economic Development Strategies executive director Gift Mugano told <a href="https://www.newsday.co.zw/local-news/article/200012491/we-cannot-control-black-market-exchange-rate-rbz">NewsDay</a> in an interview that the RBZ should be concerned about the parallel market rate. He said:
<blockquote>
The pricing regime in the market now is determined by the black-market pricing and the same black market is influenced by policy discord within the government.
The fact that the central bank controls the exchange rate on the auction system has been one of the drivers of distortions.
You can’t say you are only concerned about the official rate. They should be concerned about the black-market rate. This is a sign of accepting defeat.
</blockquote>
The Zimbabwe dollar is currently trading close to $4 000 to the US dollar on the parallel market.
This has resulted in price hikes and the shortage of some basic food items in supermarket shelves where they are sold in Zimbabwe dollars but the same goods are readily available on the informal market and being sold exclusively in US dollars.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

RBZ Cannot Control Black Market Rates, Says Official

The Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU) has directed financial institutions to unfreeze all the accounts and other financial assets belonging to individuals who were implicated in alleged smuggling and money laundering by Al Jazeera’s documentary series that was premiered in March and April this year.
The central bank said it froze the assets of Cleopas Chidodo, David Chirozvi, Mehlululi Dube and Fredrick Kunaka, who told the undercover Al Jazeera reporters that they accepted money to assist a gold-smuggling and money laundering.
The four men, all Zimbabwean nationals, made the statements in a four-part documentary series called “Gold Mafia”.
<a href="https://www.chronicle.co.zw/uebert-angel-rudland-accounts-frozen/">State media reports</a> in early April indicated that the RBZ had directed that accounts belonging to Ewan McMillan, Kamlesh Pattni, Uebert Angel, and Simon Rudland should be frozen.
But in a statement issued on Monday, 15 May 2023, FIU director Oliver Chiperesa said the Unit had not identified transactions linked to money laundering connected to the allegations in the Al Jazeera documentary. Reads the statement:
<blockquote>
Following the broadcast of Al Jazeera’s documentary series titled “The Gold Mafia,” the Financial Intelligence Unit (FIU) issued a directive on 31 March 2023 directing financial institutions to identify, freeze and report bank accounts and other financial assets owned and/or controlled by individuals who were alleged to have played key roles in alleged acts of money laundering and other financial crimes.
The FIU exercised its temporary freezing powers to ensure that any illicit proceeds connected to the allegations in the documentary would not be dissipated or disposed of by the persons concerned and prejudice potential future investigations.
The FIU, working in close collaboration with law enforcement agencies, has since concluded its analysis of the four episodes of the Al Jazeera documentary and has also analyzed the financial assets and transactions of the persons implicated in the documentary and has determined that there is no good cause for the freezing order to remain in place.
The FIU has not identified transactions/assets linked to money laundering and related financial crime connected to the allegations in the Al Jazeera documentary.
In view of the above, the FIU has directed financial institutions to unfreeze all the accounts and other financial assets that had been frozen pursuant to the directive of 31 March 2023.
The unfreezing action is without prejudice to any further investigations that law enforcement agencies may wish to commence or continue against any of the persons involved.
Some of the allegations in the documentary relate to money laundering and financial crimes alleged to have taken place outside Zimbabwe’s borders.
The FIU, if so requested, stands ready and is indeed mandated to cooperate with any international investigations against any of the persons or entities mentioned in the documentary.
</blockquote>
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Gold Mafia: RBZ Says There Is No Evidence Supporting Al Jazeera Allegations

The Zimbabwe dollar has lost significant value against the United States dollar on the foreign currency auction held by the <a href="https://wiki.pindula.co.zw/Reserve_Bank_of_Zimbabwe">Reserve Bank of Zimbabwe (RBZ). </a>
On 09 May 2023, the weighted average was US$1: ZWL$1,212.5.8  up from US$1: ZWL$1,070 reported on 02 May 2023.
The central bank allotted a total of US$16,349 930.31 down from US$19,053,366.38, with the majority of the allotment going to raw materials, followed by machinery and equipment.
The amount allotted for the Small to Medium Enterprises Forex Auction was US$1,576,700.13 down from US$2,280,785.72, while the Main Forex Auction was allotted US$14,773,230.18 down from US$16,772,580.66.
<blockquote>
♦ Weighted Average Rate moved to 1,212.5.8 up from 1,070.
</blockquote>
<h2>How the money was allocated:</h2>
<blockquote>
<ul>
<li>Raw Materials ………………………. (SME) US$392,11.03 7,17,37.67; (MAIN) US$7,017,237.67</li>
<li>Machinery and Equipment …………. (SME) US$590,158.96; (MAIN) US$3,047,072.03</li>
<li>Consumables (Incl. Spares, Tyres, Electricals, etc) – (SME) US$200,611.76; (MAIN) US$963,868.44</li>
<li>Services (Loans, Education, Dividends, Disinvestments, etc) – (SME) US$170,312.82; (MAIN) US$854,682.24</li>
<li>Retail and Distribution (Incl. Food, Beverages, etc) – (SME) US$111,545.24; (MAIN) US$1,390,864.07</li>
<li>Lubricants …………………………. (MAIN) US$50,000,00</li>
<li>Pharmaceuticals and Chemicals … (SME) US$57,666.08; (MAIN) US$407,331.35</li>
<li>Paper and Packaging ……………… (SME) US$53,894.24; (MAIN) US$1,042,174.38</li>
<li>TOTAL amount alloted to SMEFX134/2023  … US$1,576,700.13</li>
<li>TOTAL amount alloted to MAIN FX140/2023) … US$14,773,230.18</li>
<li>GRAND TOTAL AWARDED ……. US$16,349 930.31</li>
</ul>
Notes
<ol>
<li>Bids with overdue CD1s, outstanding Bills of Entry (BOEs), insufficient ZWL and those with sufficient FCA balances were also disqualified.</li>
<li>Some Bids were allotted on a pro-rata basis.</li>
</ol>
</blockquote>
<h2><a href="https://news.pindula.co.zw/">More Pindula News</a></h2>
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RBZ Forex Auction: Zimbabwe Dollar Official Rate 09 May 2023

Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya has announced the introduction of gold-backed digital tokens to be used “both as a means of payment and a store of value.”
In a statement on Friday, Mangudya said the gold-backed digital tokens will be introduced in two phases, starting on 08 May 2023.
He said tokens will be available for sale, through banks, in both foreign currency and Zimbabwe dollars. Reads the statement:
<blockquote>
Pursuant to the resolution of the Monetary Policy Committee (the MPC) on 28 March 2023 to complement the issuance of physical gold coins with gold-backed digital products, the Bank wishes to advise that it will be issuing gold-backed digital tokens with effect from 8 May 2023.
The gold-backed tokens will be fully backed by physical gold held by the Bank.
As previously advised, the issuance of gold-backed digital tokens is meant to expand the value-preserving instruments available in the economy and enhance divisibility of the investment instruments and widen their access and usage by the public.
The issuance and usage of the gold-backed digital tokens shall be in two phases as follows:
<ol>
<li>Phase 1: Gold-backed digital tokens will be issued for investment purposes with a vesting period of 180 days and redeemable in the same way as the existing physical gold coins. The tokens will be available for sale, through banks, in both foreign currency and Zimbabwe dollar. Banks will create dedicated or specific accounts for the holding of the gold-backed digital tokens (e-gold wallets or e-gold cards). Holders of physical gold coins, at their discretion, will be able to exchange or convert, through the banking system, the physical gold coins into gold-backed digital tokens.</li>
<li>Phase 2: The gold-backed digital tokens held in either e-gold wallets or e-gold cards will be tradable and capable of facilitating Person-to-Person (P2P) and Person-to- Business (P2B) transactions and settlements. It, therefore, means that the gold-backed digital tokens would be used both as a means of payment and a store of value.</li>
</ol>
The Bank also advises that the pricing of the gold-backed digital tokens in foreign currency shall remain the same as the pricing model of the physical gold coins as informed or guided by the international gold price as determined by the London Bullion Market Association (LBMA) PM fix.
Payment for the gold-backed digital tokens or physical gold coins in Zimbabwe dollar shall remain at the current 20% margin above the willing-buyer willing-seller interbank mid- rate.
</blockquote>
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

RBZ To Introduce Gold-backed Digital Tokens On 8 May

Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said that the gold-backed digital token set to be introduced in the coming weeks will act as a store of value and will also be used for transactions.
Speaking in an interview with <a href="https://www.herald.co.zw/rbz-gold-digital-tokens-to-hit-market-next-month/">The Herald</a> on Thursday, Mangudya said the introduction of the gold-backed digital token is expected to suck excess liquidity from the market and stabilise the Zimbabwe dollar which has been in free-fall on the parallel market. Said Mangudya:
<blockquote>
Inflation, which has also declined in US dollar terms, is expected to further decline, so the outlook is very good.
Going forward, inflation will continue to decline due to stabilising local currency, as the RBZ expects to introduce gold-backed digital tokens.
The gold-backed digital token will act as a store of value, and secondly, they can be used for transactions.
By doing so, this will mop up all the excess liquidity in the market, and stabilise the currency.
</blockquote>
The latest statistics from Zimbabwe National Statistics Agency (ZimStat) show that annual inflation declined by 12.4 percentage points to 75.2 percent in April 2023.
However, on a monthly basis, consumer prices increased by 2.4 percent in April, the most in six months, after decreasing by 0.1 percent in the prior month.
Zimbabwe’s annual inflation climbed to a two-year high of 284.94 percent last year while the monthly rate peaked at 30.2.
Since the beginning of 2023, ZIMSTAT has been measuring inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars.
Previously the rate of inflation was based only on items in Zimbabwean dollars.
Last month, <a href="https://zero.pindula.co.zw/blended-inflation-rate-is-pure-undiluted-heresy-biti/">former Finance Minister Tendai Biti the government to measure inflation using a weighted average</a> of items priced in Zimbabwean dollars and United States dollars is insincere and an attempt to conceal rising inflation. He said:
<blockquote>
Inflation is the measure of the price movement of a good over a period of time. Any good has one price so the blend rate is pure undiluted heresy and is a disingenuous attempt to muddle the ever-rising rate of inflation.
</blockquote>
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Digital Currency To Stabilise Zimbabwe Dollar - Mangudya

The Reserve Bank of Zimbabwe (RBZ) plans to introduce a gold-backed digital currency to be used as legal tender for transacting in the country to stabilise the Zimbabwe dollar from its continued depreciation against the United States dollar.
Digital gold tokens will be a form of electronic money backed by gold held at the RBZ.
RBZ Governor John Mangudya told <a href="https://www.sundaymail.co.zw/rbz-introduces-gold-backed-digital-currency">The Sunday Mail</a> that the digital gold tokens will allow those holding small amounts of Zimbabwe dollars to exchange their money for tokens to store value and hedge against currency volatility.
The RBZ is also considering releasing more Mosi-oa-Tunya gold coins onto the market to arrest the recent sharp depreciation of the Zimbabwe dollar on the parallel market. Said Mangudya:
<blockquote>
What we have noticed is that demand for foreign currency, apart from being driven by the need to import goods and services in Zimbabwe, is also viewed as a store of value.
It means anyone with local currency would want to convert it to foreign currency.
We are addressing this demand for store of value by increasing the number of gold coins in the market so that we manage that demand.
We shall also soon be introducing digital gold tokens to ensure that those with low amounts of local currency are able to purchase the gold units so that we leave no one and no place behind.
</blockquote>
Officially, the Zimbabwe dollar trades at ZWL$1 000.4 against the dollar but readily changes hands at Z$1 800 on the parallel market.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Zimbabwe To Introduce Gold-backed Digital Currency

The Zimbabwe dollar has for the first time breached the 1 000 mark against US$1.00  on the <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe">Reserve Bank of Zimbabwe (RBZ) </a>foreign currency auction.
This Wednesday, 19 April 2023, the weighted average moved to US$1: ZWL$1 000.0227, from US$1: ZWL$959.3111 which was set on 11 April 2023.
The RBZ said the highest rate received was 1 125.0000, while the lowest bid rate allotted was 978 000.
The central bank also said a total of US$18,905,097.94 was allotted today down from US$20,568,055.34, which was allotted last week.
The bulk of the allotment went to raw materials followed by machinery and equipment.
The total amount allotted for the Small to Medium Enterprises Forex Auction was US$1,731,764.97 down from US$US$2,241,706.95.
The total amount allotted on the Main Forex Auction was US$17,173,332.97 down from US$18,326,348.39.
<blockquote>
♦ Weighted Average Rate moved to 1 000.0227 from 959.3111.
</blockquote>
<h2>How the money was allocated:</h2>
<blockquote>
Raw Materials……………………………………(SME) US$616,821.49 (MA)US$9,101,791.90
Machinery and Equipment……………………..…(SME)US$537,029.59  … (MA)US$3,439,887.52
Consumables (Incl. Spares, Tyres, Electricals, etc)…(SME) US$213,005.13 … (MA) US$1,077,195.49
Services (Loans, Education, Dividends, Disinvestments…) (SME) US$115,342.95  … (MA) US$1,033,601.13
Retail and Distribution (Incl. Food, Beverages, etc)…(SME) US$168,605.61 … (MA) US$1,183,168.54
Lubricants ………………………………………………. (SME) US$50,000.00
Pharmaceuticals and Chemicals …………….… (SME) US$54,055.63  … (MA) US$517,726.37
Paper and Packaging …………………………… (SME) US$26,904.57 …. (MA) US$769,962.02
<blockquote>
TOTAL Amount allotted for the SMEFX124/2023 ………..US$1,731,764.97
TOTAL Amount allotted for the MAIN FX130/2023 ………US$17,173,332.97
GRAND TOTAL AWARDED ………………………… US$18,905,097.94
</blockquote>
<h2>Notes</h2>
<blockquote>
1. Bids with overdue CD1s, outstanding Bills of Entry (BOEs), insufficient ZWL and those with sufficient FCA balances were also disqualified.
2. Some Bids were allotted on a pro-rata basis.
</blockquote>
</blockquote>
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Zimbabwe Dollar Official Rate Crosses $1 000 Mark

The Zimbabwe dollar this week remained below the 1 000 mark against US$1.00  on the <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe">Reserve Bank of Zimbabwe (RBZ)</a> foreign currency auction despite reaching at least 1 500 on the parallel market in recent days.
This Tuesday, 11 April 2023, the weighted average moved to US$1: ZWL$959.3111, up from US$1: US$1: ZWL$944.7133 which was set on 04 April 2023.
The RBZ said the highest rate received was 1 100.0000, while the lowest bid rate allotted was 950 000.
The central bank also said a total of US$20,568,055.34 was allotted today down from US$20,969,947.45, which was allotted last week.
The bulk of the allotment went to raw materials followed by machinery and equipment.
The total amount allotted for the Small to Medium Enterprises Forex Auction was US$2,241,706.95 down from US$2,379,980.25.
The total amount allotted on the Main Forex Auction was US$18,326,348.39 down from US$18,589,967.20.
<blockquote>
♦ Weighted Average Rate moved to 959.3111 from 944.7133.
</blockquote>
<h2>How the money was allocated:</h2>
<blockquote>
Raw Materials……………………………………(SME) US$780,117.95  (MA) US$10,145,544.10
Machinery and Equipment……………………..…(SME)US$680,281.10  … (MA)US$3,111,160.89
Consumables (Incl. Spares, Tyres, Electricals, etc)…(SME) US$303,176.35 … (MA) US$1,082,756.22
Services (Loans, Education, Dividends, Disinvestments…) (SME) US$130,751.42  … (MA) US$1,157,856.91
Retail and Distribution (Incl. Food, Beverages, etc)…(SME) US$231,773.24 … (MA) US$1,603,231.85
Lubricants ………………………………………………. (SME) US$40,000.00
Pharmaceuticals and Chemicals …………….… (SME) US$92,954.56  … (MA) US$480,479.95
Paper and Packaging …………………………… (SME) US$22,652.33 …. (MA) US$705,318.47
TOTAL Amount allotted for the SMEFX124/2023 ………..US$2,241,706.95
TOTAL Amount allotted for the MAIN FX130/2023 ………US$18,326,348.39
GRAND TOTAL AWARDED ………………………… US$20,568,055.34
</blockquote>
<h2>Notes</h2>
<blockquote>
1. Bids with overdue CD1s, outstanding Bills of Entry (BOEs), insufficient ZWL and those with sufficient FCA balances were also disqualified.
2. Some Bids were allotted on a pro-rata basis.
</blockquote>

Zimbabwe Dollar Official Rate As Of 11 April 2023

The Reserve Bank of Zimbabwe Financial Intelligence Unit (FIU) has frozen the assets of four officials who were caught on camera confessing that they are involved in gold smuggling, money laundering, bribery and other corrupt activities.
In a memo seen by <a href="https://www.herald.co.zw/gold-mafia-suspects-assets-frozen/">The Herald</a>, the FIU directs that the assets of Cleopas Chidodo, David Chirozvi, Mehlululi Dube and Fredrick Kunaka be frozen.
The four individuals were featured in a documentary by Al Jazeera titled “Gold Mafia” and were filmed by undercover journalists who posed as investors revealing how they facilitate gold smuggling and money laundering. Reads the FIU memo:
<blockquote>
You are being directed to immediately identify and freeze all assets of the following individuals; Cleopas Chidodo, David Chirozvi, Mehlululi Dube and Fredrick Kunaka.
May you also freeze all assets of legal persons and arrangements associated with them. Kindly treat this request as urgent.
</blockquote>
Chidodo is the Civil Aviation Authority of Zimbabwe Head of Security. He appeared in Episode 2 of the documentary explaining how he assists gold smugglers avoid detection at the Robert Gabriel Mugabe International Airport.
Chirozvi is the Reserve Bank of Zimbabwe’s Aurex Jewellery Head of Finance.
Kunaka is the General Manager of Fidelity Printers and Refiners. He told the undercover reporters that he received a kickback of US$30 000 a month from the “Gold Mafia”.
Dube, who is associated with Golden Beryl Private Limited, was allegedly being paid US$3 000 per month by the gold smuggling syndicate.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

RBZ Freezes Four "Gold Mafia" Suspects’ Assets

The Zimbabwe dollar this week depreciated by less than ZWL$3.00 against the United States dollar on the <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe">Reserve Bank of Zimbabwe (RBZ)</a> foreign currency auction.
This Tuesday, 21 March 2023, the weighted average moved to US$1: ZWL$915.1822, from US$1: US$1: ZWL$912.5828 which was set on 14 March 2023.
The central bank said a total of US$18,719,881.96 was allotted today down from US$19,819,940.12, which was allotted last week.
The bulk of the allotment went to raw materials followed by machinery and equipment.
The total amount allotted for the Small to Medium Enterprises Forex Auction was US$1,950,094.82 down from US$2,530,187.62.
The total amount allotted on the Main Forex Auction was US$16,769,787.14 down from US$17,289,752.50.
<blockquote>
♦ Weighted Average Rate 915.1822 from 912.5828.
</blockquote>
<h2>How the money was allocated:</h2>
<blockquote>
Raw Materials……………………………………(SME) US$572,024.56  (MA) US$7,324,594.15
Machinery and Equipment……………………..…(SME)US4578,298.43  … (MA)US$3,187,757.32
Consumables (Incl. Spares, Tyres, Electricals, etc)…(SME)US$301,083.28 … (MA)US41,338,761.04
Services (Loans, Education, Dividends, Disinvestments…) (SME)US$148,676.81  … (MA)US41,468,144.95
Retail and Distribution (Incl. Food, Beverages, etc)…(SME)US$252,715.86 … (MA)US$2,164,656.62
Electricity ………………………………………………. (SME) US$9,936.75
Pharmaceuticals and Chemicals …………….… (SME)US$64,907.54  … (MA)US$683,282.50
Paper and Packaging …………………………… (SME)US$22,451.59 ….(MA)US$602,590.56
TOTAL Amount allotted for the SMEFX124/2023 ………..US$1,950,094.82
TOTAL Amount allotted for the MAIN FX130/2023 ………US$16,769,787.14
GRAND TOTAL AWARDED ………………………… US$18,719,881.96
</blockquote>
<h2>Notes</h2>
<blockquote>
1. Bids with overdue CD1s, outstanding Bills of Entry (BOEs), insufficient ZWL and those with sufficient FCA balances were also disqualified.
2. Some Bids were allotted on a pro-rata basis.
</blockquote>
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Zimbabwe Dollar Official Rate As Of 21 March 2023

Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya has sought to clarify the issue of Gold Dealing Licence fees following the publication of Statutory Instrument 32 of 2023 on Monday, 20 March 2023.
The Statutory Instrument set the fee for a Gold Dealing Licence at US$200 000 per annum.
In a statement issued this Tuesday, 21 March, Mangudya said that only gold refiners will pay US$200 000, while permits for gold-buying agents cost US$2 500 per annum. Reads the statement:
<blockquote>
<h2>GOLD DEALING LICENCE FEES AND GOLD BUYING AGENCY FEES</h2>
It has come to the attention of the Reserve Bank of Zimbabwe (the Bank) that there has been some misunderstanding pertaining to payment of gold dealing licence fees and gold buying agency fees following the publication of Statutory Instrument 32 of 2023, (Gold Trade (Licence Fees) Amendment Notice, 2023 (No.1)), on 20 March 2023.
In line with its mandate to promote the development of gold mining and production in Zimbabwe, the Bank wishes to provide clarity as follows:
(a) Statutory Instrument 32 of 2023 provides for annual licence fees payable by gold dealers – that is, persons licensed to buy, refine and export gold. Thus only gold refiners shall be liable to pay the US$200 000 licence fees.
(b) Gold buying agents are issued with permits by holders of a gold dealing licence and in the case of Fidelity Gold Refinery (Private) Limited, the agents are appointed to buy gold on its behalf in areas where it does not have gold buying centres and the permit costs US$2 500 per annum.
In that regard, a gold dealing licence is distinct from a gold buying agency permit.
</blockquote>
Of late, stakeholders in the gold mining sector have been complaining over increases in gold sector licensing fees, but <a href="https://www.newzimbabwe.com/mthuli-ncube-pegs-gold-dealers-licence-at-us200k/">NewZimbabwe.com</a> reported government sources as saying licensing fees will allow the lower levels of society to benefit from the yellow metal.
Earlier this month, Fidelity Gold Refiners (FGR) general manager, Peter Magaramombe, told <a href="https://businesstimes.co.zw/rains-wash-away-gold-output/">Business Times</a> that gold production in Zimbabwe dropped by 26% to 3.79 tonnes in the first two months of this year from the 5.129 tonnes reported in the preceding comparative period.
The significant drop in gold output has been blamed on heavy rains received in most parts of the country.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

RBZ Speaks On Gold Dealing Licence Fees

The Zimbabwe dollar this week shed only $4.66 to average $912.5828 against the United States dollar on the <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe">Reserve Bank of Zimbabwe (RBZ)</a> foreign currency auction.
This Tuesday, 14 March 2023, the weighted average moved to US$1: ZWL$912.5828, from US$1: ZWL$$907.9236 that was set on 07 March 2023.
The central bank said a total of US$19,819,940.12 was allotted today up from US$18,079,094.38, which was allotted last week.
The bulk of the allotment went to raw materials followed by machinery and equipment.
The total amount allotted for the Small to Medium Enterprises Forex Auction was US$2,530,187.62 up from US$2,144,924.87.
The total amount allotted on the Main Forex Auction was US$17,289,752.50 up from US$15,934,169.51.
<blockquote>
♦ Weighted Average Rate 912.5828 from 907.9236.
</blockquote>
<h2>How the money was allocated:</h2>
<blockquote>
Raw Materials……………………………………(SME) US$ 742,403.42  (MA) US$9,572,202.10
Machinery and Equipment……………………..…(SME) US$730,643.76  … (MA)US$2,429,410.70
Consumables (Incl. Spares, Tyres, Electricals, etc)…(SME) US$407,072.60 … (MA)US$1,091,171.52
Services (Loans, Education, Dividends, Disinvestments…) (SME)US$206,857.61  … (MA) US$1,101,088.97
Retail and Distribution (Incl. Food, Beverages, etc)…(SME)US$291,079.27 … (MA)US$1,800,702.01
Electricity ………………………………………………. (MA) US$30,000.00
Pharmaceuticals and Chemicals …………….… (SME)US$99,076.09  … (MA)US$418,023.70
Paper and Packaging …………………………… (SME)US$53,054.87 ….(MA)US$847,153.50
TOTAL Amount allotted for the SMEFX124/2023 ………..US$2,530,187.62
TOTAL Amount allotted for the MAIN FX130/2023 ………US$17,289,752.50
GRAND TOTAL AWARDED ………………………… US$19,819,940.12
</blockquote>
<h2>Notes</h2>
<blockquote>
1. Bids with overdue CD1s, outstanding Bills of Entry (BOEs), insufficient ZWL and those with sufficient FCA balances were also disqualified.
2. Some Bids were allotted on a pro-rata basis.
</blockquote>
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Zimbabwe Dollar Official Rate As Of 14 March 2023

The Zimbabwe dollar has breached the $900 mark against the US dollar on the <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe">Reserve Bank of Zimbabwe (RBZ)</a> foreign currency auction.
This Tuesday, 07 March 2023, the weighted average moved to US$1: ZWL$907.9236, from US$1: ZWL$892.6349 that was set on 28 February 2023.
The central bank said a total of US$18,079,094.38 was allotted today up from US$17,562,464.59, which was allotted last week.
The bulk of the allotment went to raw materials followed by machinery and equipment.
The total amount allotted for the Small to Medium Enterprises Forex Auction was US$2,144,924.87 down from US$2,165,675.36.
The total amount allotted on the Main Forex Auction was US$15,934,169.51 up from US$15,396,789.59.
<blockquote>
♦ Weighted Average Rate 907.9236 from 892.6349.
</blockquote>
<h2>How the money was allocated:</h2>
<blockquote>
Raw Materials……………………………………(SME) US$ 603,795.73  (MA) US$7,959,704.89
Machinery and Equipment……………………..…(SME) US$630,601.33  … (MA)US$3,262,466.97
Consumables (Incl. Spares, Tyres, Electricals, etc)…(SME) US$230,563.99 … (MA)US$966,846.51
Services (Loans, Education, Dividends, Disinvestments…) (SME)US$208,993.30  … (MA) US$1,306,547.18
Retail and Distribution (Incl. Food, Beverages, etc)…(SME)US$347,457.00 … (MA)US$1,182,639.25
Electricity ………………………………………………. (SME) US$3,409.13
Pharmaceuticals and Chemicals …………….… (SME)US$84,198.09  … (MA)US$410,374.94
Paper and Packaging …………………………… (SME)US$35,906.30 ….(MA)US$845,589.77
TOTAL Amount allotted for the SMEFX124/2023 ………..US$2,144,924.87
TOTAL Amount allotted for the MAIN FX130/2023 ………US$15,934,169.51
GRAND TOTAL AWARDED ………………………… US$18,079,094.38
</blockquote>
<h2>Notes</h2>
<blockquote>
1. Bids with overdue CD1s, outstanding Bills of Entry (BOEs), insufficient ZWL and those with sufficient FCA balances were also disqualified.
2. Some Bids were allotted on a pro-rata basis.
</blockquote>
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Zimbabwe Dollar Breaches $900 Mark: Official Rate As Of 07 March 2023

The Reserve Bank of Zimbabwe (RBZ) on Wednesday doubled the amount of foreign currency in cash someone can physically carry on their person or in their baggage out of the country to US$10 000, reported <a href="https://www.herald.co.zw/travellers-can-now-take-out-us10-000-cash/">The Herald</a>.
RBZ Governor John Panonetsa Mangudya announced the new cash limit in a Statutory Instrument made in terms of the Exchange Control Act.
The US$10 000 limit in baggage or pocket can be cash in any foreign currency, gold coins, or in any desired combination of foreign currencies or gold coins.
Travellers can also take out the equivalent of US$1 000 at the interbank rate in “demonitised” Zimbabwean notes and coins.
According to the new regulations, anyone intending to carry more than US$10 000 in notes and coins, rather than making electronic transfers, requires exchange control approval.
However, diplomats are not subject to these limits.
An economic commentator, Prosper Chitambara, said the new regulations are a welcome development. He said:
<blockquote>
It is an improvement from the US$5 000 that was there before and it’s meant to relax capital controls in terms of the export of cash.
It’s critical in terms of engendering greater levels of confidence within the economy.
The more relaxed the control, the greater improvement in confidence in the economy.
</blockquote>
However, Harare-based economist Gift Mugano argued that the legal instrument will result in more foreign currency being taken out of the country. Said Mugano:
<blockquote>
It does not stimulate economic growth but rather will expedite the draining of foreign currency from the country.
The net effect of this is a liquidity crunch particularly now since we are now dollarised.
You are aware that we have a large informal sector and by increasing the amount of money that can be taken out of the country to US$10 000, we have really taken a position to take oxygen out of our system.
The most important exchange controls which must be dealt with relate to export retention and liberalisation of the exchange rate.
Increasing foreign currency which can be taken out is merely draining oxygen from our system.
</blockquote>
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Travellers Can Now Take US$10 000 Cash Out Of Zimbabwe

The Zimbabwe dollar has continued to lose value against the US dollar, data released by the <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe">Reserve Bank of Zimbabwe (RBZ)</a> this Tuesday show.
On 28 February 2023, the weighted average at the foreign currency auction moved to US$1: ZWL$892.6349,  fromUS$1: ZWL$881.7513 that was set on 22 February 2023.
The central bank said a total of US$17,562,464.59 was allotted today down from US$19,632,591,61, which was allotted last week.
The bulk of the allotment went to raw materials followed by machinery and equipment.
The total amount allotted for the Small to Medium Enterprises Forex Auction was  US$2,165,675.36 up from US$1,814,191.43.
The total amount allotted on the Main Forex Auction was US$15,396,789.59 down from US$17,818,400.18.
<blockquote>
♦ Weighted Average Rate 856.8403 from 831.8147.
</blockquote>
<h2>How the money was allocated:</h2>
<blockquote>
Raw Materials……………………………………(SME) US$652,589.50  (MA) US$7,856,434.10
Machinery and Equipment……………………..…(SME) US$525,704.45  … (MA)US$2,891,433.86
Consumables (Incl. Spares, Tyres, Electricals, etc)…(SME) US$339,961.23 … (MA)US$1,264,055.69
Services (Loans, Education, Dividends, Disinvestments…) (SME)US$197,421.92  … (MA) US$1,333,618.55
Retail and Distribution (Incl. Food, Beverages, etc)…(SME)US$251,868.14… (MA)US$991,023.07
Electricity ………………………………………………. (SME) US$9,860.16
Pharmaceuticals and Chemicals …………….… (SME)US$85,531.27  … (MA)US$353,928.77
Paper and Packaging …………………………… (SME)US$102,738.69 ….(MA)US$706,295.19
TOTAL Amount allotted for the SMEFX124/2023 ………..US$2,165,675.36
TOTAL Amount allotted for the MAIN FX130/2023 ………US$15,396,789.59
GRAND TOTAL AWARDED ………………………… US$17,562,464.59
</blockquote>
<h2>Notes</h2>
<blockquote>
1. Bids with overdue CD1s, outstanding Bills of Entry (BOEs), insufficient ZWL and those with sufficient FCA balances were also disqualified.
2. Some Bids were allotted on a pro-rata basis.
</blockquote>
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

Zimbabwe Dollar Official Rate As Of 28 February 2023

The Reserve Bank of Zimbabwe (RBZ) forex auction weighted average rate moved to US$1: ZWL$779.3101 on 24 January 2023, from the US$1: ZWL$732.0036 that was set on 17 January.
The central bank said a total of US$13,863,114.02 was allotted today, down from US$14,471,109.58, which was allotted last week.
The bulk of the allotment went to raw materials followed by machinery and equipment.
The total amount allotted for the Small to Medium Enterprises Forex Auction (SMEFX119/2023) was  US$1,515,043.86.
The total amount allotted on the Main Forex Auction (MAIN FX125/2023) was US$12,348,070.16.
<blockquote>
♦ Weighted Average Rate 779.310
</blockquote>
<h2>How the money was allocated:</h2>
Raw Materials………………………………………………………………..US$7,387,486.93
Machinery and Equipment………………………………………………US$1,500,218.74
Consumables (Incl. Spares, Tyres, Electricals, etc)………………US$823,964.98
Services (Loans, Education, Dividends, Disinvestments, etc)…US$1,659,147.96
Retail and Distribution (Incl. Food, Beverages, etc) ……………..US$1,309,042.98
Pharmaceuticals and Chemicals …………………………………………US$552,832.63
Paper and Packaging …………………………………………………………US$630419.8
TOTAL Amount allotted for the SMEFX111/2022 …………. US$1,515,043.86
TOTAL Amount allotted for the MAIN FM117/2022 …… US$12,348,070.16
GRAND TOTAL AWARDED ………………………………… US$13,863,114.02
<h2>Notes</h2>
1. Bids with overdue CD1s, outstanding Bills of Entry (BOEs), insufficient ZWL and those with sufficient FCA balances were also disqualified.
2. Some Bids were allotted on a pro-rata basis.

RBZ Forex Auction: Zimbabwe Dollar Official Rate As Of 24 January 2023

The Zimbabwe dollar has continued to fall in value against the US dollar at the Reserve Bank of Zimbabwe (RBZ) foreign currency auction.
At the latest auction conducted today, 17 January 2023, the weighted average rate moved to US$1: ZWL$732.0036 from the US$1: ZWL$705.4164 that was set last week on 10 January.
The central bank said a total of US$14,471,109.58 was allotted today, up from US$10,806,183.25, which was allotted last week.
The bulk of the allotment went to raw materials followed by machinery and equipment.
The total amount allotted for the Small to Medium Enterprises Forex Auction (SMEFX119/2023) was  US$1,748,201.30.
The total amount allotted on the Main Forex Auction (MAIN FX125/2023) was US$12,722,908.28.
<blockquote>
♦ Weighted Average Rate 732.0036
</blockquote>
<h2>How the money was allocated:</h2>
Raw Materials………………………………………………………………..US$8,503,416.78
Machinery and Equipment………………………………………………US$1,434,549.97
Consumables (Incl. Spares, Tyres, Electricals, etc)………………US$1,269,405.28
Services (Loans, Education, Dividends, Disinvestments, etc)…US$1,293,749.25
Retail and Distribution (Incl. Food, Beverages, etc) ……………..US$1,174,923.2
Pharmaceuticals and Chemicals …………………………………………US$306,281.76
Paper and Packaging …………………………………………………………US$488,783.34
TOTAL Amount allotted for the SMEFX111/2022 …………. US$1,748,201.30
TOTAL Amount allotted for the MAIN FM117/2022 …… US$12,722,908.28
GRAND TOTAL AWARDED ………………………………… US$14,471,109.58
<h2>Notes</h2>
1. Bids with overdue CD1s, outstanding Bills of Entry (BOEs), insufficient ZWL and those with sufficient FCA balances were also disqualified.
2. Some Bids were allotted on a pro-rata basis.

RBZ Forex Auction: Zimbabwe Dollar Official Rate As Of 17 January 2023

Moses Mashavave, an entrepreneur, has urged the Reserve Bank of Zimbabwe (RBZ) to narrow the gap between the small to medium enterprises auction and the main auction.
Mashavave, who is one of those that have benefitted from the auction floor, said some SMEs that have grown in the recent past but do not qualify to participate in the main auction system, also need to be catered for. He said:
<blockquote>
We need the central bank to work to narrow the gap between the SMEs auction and the main auction.
A company that has been receiving support from RBZ for a year has obviously grown but probably is not big enough to qualify for the main auction.
</blockquote>
The auction system resumed trading last week following the closure for the festive holidays.
On 10 January 2023, the RBZ allotted a total of US$10,806,183.25, with US$10,019,285.89 going to the main auction, while the SMEs auction was allotted US$786,897.36.
Since its inception in June 2020, US$3,7 billion has been allotted through the auction system to both the main and the SMEs auction. | <a href="https://www.chronicle.co.zw/call-to-revamp-auction-system/">Chronicle</a>

RBZ Urged To Overhaul Forex Auction System

The Reserve Bank of Zimbabwe (RBZ)’s continued tight monetary stance which has largely squeezed out local currency risks full re-dollarisation of the economy, analysts have warned.
Several businesses are now preferring to transact in US dollars to protect their balance sheets, with even civil servants earning the bulk of their salaries in foreign currency.
Imara Capital Zimbabwe in its Zimbabwe Investment notes said authorities’ clampdown on Zimbabwe dollar payments has inadvertently accelerated dollarisation. It said:
<blockquote>
We have spent the past weeks speaking with many executives from both the private and the listed space.
Two large food manufacturers we met have seen their US dollar revenues rise from around 35 percent of sales earlier in 2022 to over 70 percent since August 2022.
Furthermore, the formal retailers have found it difficult to pay them so products have been directed to the US dollar cash economy and hence physical cash intake has risen.
</blockquote>
Last year, the RBZ introduced gold coins that are reported to have mopped up excess ZWL liquidity in the market.
It also introduced minimum lending rates of 200 percent and 100 percent for corporates and individuals respectively, among other measures that have curtailed credit expansion.
Economist, Eddie Cross, said restricting the availability of the Zimbabwe dollar “could force dollarisation”.
Another economic commentator, Gift Mugano, said the high interest rates of 200 percent means businesses would be paying three times the principal amount. He said:
<blockquote>
There is no business that makes such margins, which can guarantee that kind of return that will give a business the capacity to pay back.
</blockquote>
Mugano also said businesses have already taken positions to convert their ZWL loans into US dollar loans, and this will result in the creation of artificial US dollars. He said:
<blockquote>
What it does is, we have new risks arising from that such as competitiveness challenges, the creation of artificial US dollars because when these loans are restructured into US dollar loans and new notes are given out, banks are charging interest rates and bank charges.
</blockquote>
| <a href="https://www.businessweekly.co.zw/economy-risks-fast-track-re-dolarisation/">Business Weekly</a>

RBZ Measures May Accelerate Full Re-dollarisation

The Zimbabwe dollar depreciated against the US dollar at the foreign currency auction conducted by the <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe">Reserve Bank of Zimbabwe (RBZ)</a> today, 10 January 2023.
The weighted average rate has moved to US$1: ZWL$705.4164 from the US$1: ZWL$671.4466 that was set at the previous auction conducted on 13 December 2022.
In its latest update, the central bank said a total of US$10,806,183.25, was allotted this week.
The bulk of the allotment went to raw materials followed by machinery and equipment.
The total amount allotted for the Small to Medium Enterprises Forex Auction (SMEFX119/2023) was  US$786,897.36.
The total amount allotted on the Main Forex Auction (MAIN FX125/2023) was US$10,019,285.89.
On 13 December 2022, the SMEFX111/2022 was alloted US$1,451,144.38 while the MAIN FX117/2022 was alloted US$14,031,231.84 to give a total of US$15,482,376.22.
This week, the weighted average breached the 700 mark for the first time:
<blockquote>
♦ Weighted Average Rate 705.4164
</blockquote>
<h2>How the money was allocated:</h2>
Raw Materials………………………………………………………………..US$6,485,995.16
Machinery and Equipment………………………………………………US$1,229,977.86
Consumables (Incl. Spares, Tyres, Electricals, etc)………………US$869,692.18
Services (Loans, Education, Dividends, Disinvestments, etc)…US$814,836.48
Retail and Distribution (Incl. Food, Beverages, etc) ……………..US$722,903.86
Pharmaceuticals and Chemicals …………………………………………US$321,388.24
Paper and Packaging …………………………………………………………US$361,389.47
TOTAL Amount allotted for the SMEFX111/2022 …………. US$786,897.36
TOTAL Amount allotted for the MAIN FM117/2022 …… US$10,019,285.89
GRAND TOTAL AWARDED ………………………………… US$10,806,183.25
<h2>Notes</h2>
1. Bids with overdue CD1s, outstanding Bills of Entry (BOEs), insufficient ZWL and
those with sufficient FCA balances were also disqualified.
2. Some Bids were allotted on a pro-rata basis.
3. Willing buyer Willing seller Bid Rate as at 06 January 2023 was ZW$675.4490

RBZ Forex Auction: Zimbabwe Dollar Official Rate As Of 10 January 2023

The Reserve Bank of Zimbabwe (RBZ) says it has discovered corporate governance and risk management weaknesses the Zimbabwe Women’s Microfinance Bank Limited after conducting an onsite examination of the financial institution.
Corporate governance weaknesses include issues such as the presence of weak or ineffective internal audits, lack of required skills by managers, lack of proper disclosures, and non-compliance with standards.
In a statement issued on Friday, 6 January, the central bank said the concerned bank’s board and shareholders have since initiated processes and measures to address the deficiencies. Reads the statement:
<blockquote>
Members of the public are advised that the Reserve Bank of Zimbabwe concluded an onsite examination of the Zimbabwe Women’s Microfinance Bank Limited in December 2022, as part of its ongoing supervision activities in terms of Section 36 of the Microfinance Act [Chapter 24:30].
The examination determined corporate governance and risk management weaknesses at the institution.
As part of its supervisory processes, the Reserve Bank has engaged the institution’s board and shareholders who have since initiated processes and measures to address the deficiencies.
The main mandate of Zimbabwe Women’s Microfinance Bank Limited is to facilitate financial inclusion and economic empowerment of women.
The Government of Zimbabwe as a shareholder is committed to the resolution of the identified weaknesses to enable the microfinance bank to continue to perform its mandate.
Through its supervisory processes, the Reserve Bank shall monitor progress on the resolution of the identified weaknesses.
</blockquote>

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