Published by the government of Zimbabwe
11 September 2008
Harare — THE Reserve Bank of Zimbabwe has increased foreign currency retention levels for exporters from 55 percent to 75 percent with effect from the beginning of this month.
The new measures mean that exporters and other generators of foreign exchange would sell 25 percent of their foreign currency earnings to the Reserve Bank and retain 75 percent in their FCAs.
The central bank yesterday said that those exporters who had surrendered their foreign currency between the beginning of the month to the present would be refunded according to the new levels.
Operators under the newly created Foreign Exchange Licenced Warehouses and Retail Shops, Foreign Exchange Licence Oil Companies and the foreign exchange licenced outlets for petrol and diesel who would be legally allowed to deal in foreign exchange would sell only 15 percent of their foreign exchange proceeds to the bank and retain 85 percent.
In his half-year monetary policy statement presented last month, RBZ governor Dr Gideon Gono said the central bank would continue to work to ensure that exporters are encouraged through various support programmes to enhance their viability.
"The export growth model that we subscribe to is one where the exchange rate continues to act as the key variable of adequate compensation to exporters.
"Under this thrust, there is, therefore need for authorised dealers and all generators of foreign exchange to ensure that they operate within the formal interbank foreign exchange market, so as to deepen its signalling capacity in the promotion of exports," he said.
Increased volumes of foreign exchange traded on the formal interbank market will, in essence, work to stabilise the exchange rate, whilst at the same time enabling the rest of the productive sectors to access foreign currency for their critical needs.
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