Nevanji Munyaradzi Chiondegwa
The Reserve Bank of Zimbabwe has issued a new directive on liquidation of unutilised retained export receipts to improve circulation and availability of foreign currency on the market.
The new measures which come from recommendations of the Monetary Policy Committee were communicated to banks by RBZ Director of Exchange Control Mr Farai Masendu.
Exporters are to continue retaining 60% of export proceeds and sell 40% to the Reserve Bank upon receipt of any export proceeds.
The thresholds, including those under the export incremental incentive scheme, shall continue to apply going forward the Apex Bank has said.
Mr Masendu wrote, “In order to operationalize the MPC resolutions aimed at ensuring the enhanced circulation of foreign currency in the market, authorised dealers are advised that with effect from 1 July 2022, exporters shall be entitled to utilise the full portion of their retained export receipts within 120 days from the date of receipt of such export proceeds.”
At the expiry of the 120 days, Authorised Dealers shall liquidate 25% of such unutilized balances on the exporter’s retention portion from each corresponding export receipt.
Upon liquidation of the 25% of such unutilized balances on the exporter’s retention portion from each corresponding export receipt, the exporter shall then be entitled to indefinitely retain the 75% balance of such unutilised funds from each corresponding receipt to meet their requirements.
The authorised dealers were advised that for existing FCA (Exports) balances, the liquidation retention shall run for 120 days effective 1 July 2022.
The measures shall not apply to foreign currency retention into domestic FCAs, loans, international organisations,embassies, NGOs and individual free funds.
These remain free funds that can be offloaded to the interbank market under the willing-buyer willing-seller framework.
He further said, “Furthermore, to ensure viability and continued availability of foreign currency, exporters with outstanding foreign currency loans and/or are undertaking capital expansion programmes, shall be considered for exemption from the 120 day liquidation requirement upon seeking specific Exchange Control approval.”
Meanwhile, Mr Masendu also wrote to banks about the introduction of Gold Coins as a Store of Value.
He said, “Authorised Dealers are advised of the introduction of gold coins into the market as an instrument that will enable investors to store value.
The gold coins will be minted by Fidelity Gold Refineries (Private) Limited and will be sold to the public through normal banking channels. Operational modalities for the handling of the gold coins shall be availed in due course.”
Recent Comments