Business Reporter
FARMERS have poured out their concerns over the Reserve Bank of Zimbabwe’s (RBZ) 70:30 foreign currency retention policy as the 2025 tobacco selling season kicks off.
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” last month the RBZ Governor John Mushayavanhu ordered exporters to surrender more US$.
Under the new directive, the foreign currency retention level for exporters was increased from 25% to 30%.
The initiative, which has since rattled key sectors like mining and manufacturing this week, took a toll on tobacco farmers who lamented the exorbitant US$ surrender requirements at a time when raw materials suppliers are demanding the greenback.
In his keynote address, the TIMB chairman, Patrick Davenish took note of the matter and committed to engage the central bank.
“With regards to payment modalities, the Reserve Bank of Zimbabwe (RBZ) advised that the foreign currency retention for tobacco is 70% in line with the retention level for other market players. This means that 30% will be paid in local currency.
“As a Board we will continue to lobby that the RBZ hears the cries of tobacco growers. We value them because they are our primary stakeholders, and their viability is at the epicenter of what we do,” he said.
For this season, he said the board has licensed two auction floors, and these are, Tobacco Sales Floor (TSF) and Premier Tobacco Auction Floor (PTAF).
“We have a total of 43 contractors and 32 Class ‘A’ buyers have been licensed for this year’s marketing season . The Board has also approved decentralized contract sales to be conducted at 56 selling points and 7 centers,” he said.
The first bale sold at US$4,65 per kg, signifying the possibility of a lucrative selling season ahead.
