By ZBC Reporter
GOVERNMENT has introduced a new gold trading framework aimed at incentivising gold producers to deliver their produce to the country’s sole buying unit, Fidelity Printers and Refineries.
The new framework will see large gold producers being paid 70 percent of their earnings in foreign currency and thirty percent in local currency at the prevailing exchange rate.
In the previous regime, gold proceeds were split 50/50 in foreign currencies and local currency for large scale gold producers which were not sustainable for their operations.
For small scale gold producers, who delivered over 60 percent of the country’s gold deliveries in 2019, they will be paid all their proceeds in foreign currency at a rate of 45 US dollars per kilogramme, a shot in the arm for the small scale gold sector.
To plug increasing cases of gold smuggling by unscrupulous agents, a permit will only be issued to a large scale gold buying agents who own mining operations producing at least fifty kilograms of fine gold per month.
Small scale gold buying agents will have to enter an Agency Agreement with Fidelity Printers and Refineries before being issued with a permit with clearly spelt out terms and conditions.
To streamline players involved in the buying and selling of gold, Fidelity Printers and Refineries is also advising all interested persons to regularise their operations in line with the new gold trading framework.
Gold remains one of the country’s foreign currency earners, with a total of 27 tonnes having been delivered in the year 2019, but cases of gold smuggling and side marketing have been rife due to unattractive buying terms by Fidelity Printers and Refiners, among other factors.
By ZBC Reporter