Oliver Kazunga, Senior Business Reporter
THE Reserve Bank of Zimbabwe has ordered platinum and chrome miners to surrender 80 percent of their export earnings to ensure effective administration of foreign exchange.
According to miningweekly.com, the RBZ was quoted as having issued the directive with immediate effect from August 4, 2017.
“…with immediate effect, 80 percent of all foreign exchange receipts from platinum group metals and chrome shall be transferred to the Reserve Bank Nostro Account on receipt,” reads part of the directive from the Central Bank quoted by the online publication.
Previously, the Zimbabwean miners were required to retain 50 percent of their earnings.
The online publication also quoted RBZ as saying the move was aimed at ensuring effective administration of foreign currency and spreading liquidity in the foreign exchange market.
The publication reported that in exchange for the foreign currency, the Central Bank would pay the exporter using Real Time Gross Settlement, crediting the exporter’s account with local currency.
Attempts to get a comment from the RBZ public relations department by Business Chronicle yesterday were futile as an official from the department, Mr Isaac Muzambi, who had earlier promised to give a comment, had not done so by the time of going to print as he was said to be out of office.
RBZ Governor, Dr John Mangudya, could also not be reached for comment as his mobile phone was not being answered.
Of late, he has blamed externalisation of foreign currency by some individuals and companies operating in the country among other illicit dealings as the major causes of the prevailing cash shortages on the market.
In the 2017 mid-term monetary policy statement presented early this month, Dr Mangudya said the monetary authority would introduce a $600 million Nostro stablisation facility.
To ensure the facility was supported by a continuous stream of export receipts and improving the efficient utilisation of foreign exchange and bringing equity in the foreign exchange market, he said, foreign exchange receipts from platinum and chrome shall be treated in the same manner as gold, diamonds, tobacco and cotton.
“This policy is consistent with best practice in other jurisdictions that include Angola and Nigeria where fuel foreign exchange receipts are managed by the central banks, just like what diamonds are to the Bank of Botswana and copper to the Bank of Zambia,” he said.
Article Source: The Chronicle