Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) Tuesday swiftly responded to global shocks which have seen US$ receipts from exports going down significantly on global markets by directing all exporters to retain just 75% of total exports.
The latest measures supersede earlier arrangements made which had seen other exporters being allowed to retain more foreign currency from their exports.
In an update, RBZ governor John Mangudya said the latest measures were made by the Monetary Policy Committee at its recent meeting on October 23 2023.
“With effect from 1 November 2023, foreign currency retention on exports shall be standardised at the level of 75% across all sectors of the economy and all special dispensations granted to some sectors of the economy shall be removed.
“The net effect of this measure is to increase foreign exchange resources available to the Bank and Government to meet foreign exchange requirements for the settlement of national and international obligations,” he said.
removing Intermediated Money Transfer Tax (IMTT) on transactions that are intermediated through plastic bank cards and other digital platforms.
“In order to support the continuous fine-tuning and further liberalisation of the foreign exchange market, with a view to guaranteeing and safeguarding exchange rate stability, it is recommended that the limit of 10% trading margin above the interbank rate be removed,” added Mangudya.
Key Highlights
Export receipts, which are the main source of foreign currency for both the wholesale and retail foreign exchange auctions and for servicing the country’s foreign commitments, fell by 9% over the nine months to September 2023, from US$4,5 billion during the comparable period in 2022 to US$3,6 billion.
The Bank Policy rate has been reduced from 150% to 130% per annum and the Medium-term Bank Accommodation (MBA) interest rate for the productive sectors including individuals and MSMEs will be maintained at 75% per annum.
Financial institutions are encouraged to scale up financial inclusion through opening of more no-frills (low-cost) accounts. This measure will promote more usage of banking services and financial products, including increased use of bank cards, digital financial services and other cash-lite means of payments in the economy.
In order to complement efforts to formalise the economy and to give more impetus to the use of non-cash-based means of payment in the economy, it is recommended that Government considers removing Intermediated Money Transfer Tax (IMTT) on transactions that are intermediated through plastic bank cards and other digital platforms.
