By Owen Mandovha
The Reserve Bank of Zimbabwe has with immediate effect scrapped the compulsory requirement to liquidate all unutilised export proceeds after 60 days in a move set to further strengthen the foreign currency auction system and give exporters full value for their money.
In the past exporters were expected to utilise their funds within 60 days, with the Reserve Bank of Zimbabwe (RBZ) converting the foreign currency into local currency at the prevailing exchange rate in the event of failure to comply.
However, the requirement was considered arbitrary and anti-business by major business organizations hence the Monetary Policy Committee (MPC) of the Reserve Bank of Zimbabwe resolved to remove the requirement after a meeting held on Thursday.
Zimbabwe National Chamber of Commerce President, Dr Tinashe Manzungu welcomed the move saying it will spur export growth.
“As the business community, we welcome this move which for a long time we called for its removal. Now exporters have the feeling that they can get full value for their money and this will also see a gradual growth in appetite to export.”
An exporter, Mr Leslie Marange described the move as a major milestone in response to the concerns raised by exporters.
“We were forced to use our foreign currency in the accounts even if we did not want to use it and this was motivation for ways to circumvent this requirement and it caused the country to lose a lot of foreign currency.”
Other resolutions made by the MPC include increasing exporter surrender requirements from 30 to 40 per cent, revising the daily maximum limit per transaction to 2 000 United States dollars and allowing bureau de change to purchase foreign currency from companies and individuals without limit, among other resolutions.