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ZIMBABWEANS can only retain 70% of their forex earnings from the previous 75%.Another policy disaster as exporters are now being forced to convert 30% of their sales profit up from 25% into ZIG at the prevailing bank rate!
This is a serious business loss for exporters as the local currency has lost great value while most commodities are pegged in usd, except for a few as government still requires the currency.
By Ross Moyo
“This review is consistent with the increased use of ZiG in the economy. The additional 5% will ensure that exporters mobilise sufficient ZiG to meet local currency obligations and other expenses, including tax payments, going forward,” said Mushayavanhu on increasing it to 30% from a previous 25%.
“The foreign currency retention level for exporters has been reduced from 75% to 70%, with immediate effect. This implies that the effective surrender portion of export proceeds has been increased from 25% to 30%,” he said.
Under the new policy, exporters will now retain only 70% of their foreign currency earnings in US dollars, down from the previous 75%.
Zimbabwe government has forced exporters to retain 30% of their foreign currency earnings in exchange of the local Zimbabwe Gold (Zig) currency at the prevailing interbank official rate an initiative to raise foreign currency analysts say will back fire by taking away the hard-earned US$ from the exporters as it comes at a time when most companies are crying foul over due to choking shortages of foreign currency.
These revelations were made yesterday by Reserve Bank of Zimbabwe Governor Dr John MangudyA who said turned a blind eye on Indications on the ground which do not favor the measure likely to complicate an already tough situation.
Mushayavanhu’s bank also moved to introduce a US Dollar Denominated Deposit Facility (USDDDF) where the export surrender proceeds will have an option to invest the funds in a USDDDF at the RBZ which they can withdraw in ZWG on demand, at the prevailing interbank exchange rate on exporters to surrender 30% foreign currency.
In essence the apex banker forced exporters to surrender 30% foreign currency by ordering them to do so through a mere MPS hence Reserve Bank of Zimbabwe compelling all exporters to surrender 30% of their earned foreign currency in exchange for the ZWG at the obtaining interbank exchange rate has been done in the pretext of Presenting the Monetary Policy Statement (MPS) premised under the theme, “Fostering Price, Currency and Exchange Rate Stability Through Balancing Confidence, Trust, Credibility, Efficiency, Stability Growth” with the RBZ Governor John Mushayavanhu ordering exporters to surrender more US$.
Dr Mushayavanhu also said the initiative is aimed at guaranteeing continued stability in the interbank foreign exchange market through augmenting the supply of foreign currency, as well as building the critical foreign currency reserves needed to anchor the ZWG.
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