RBZ tightens screws on bureaux de change

Staff Writer

The Reserve Bank of Zimbabwe (RBZ) has ordered bureaux de Change to process trades at a maximum margin of 7 percent of the interbank mid rate and adhere to the maximum US$300 per day as personal travel allowance, among a raft of measures to curb speculative tendencies

The move comes at a time forex rates on the parallel market hit ZLW$25 to the dollar on Friday before coming down to ZWL$16 at the close of business on the same day. The dollar was trading at ZWL$14 per unit on Saturday.

In a notice, RBZ said non compliance with the directive “shall result in the imposition of heavy financial penalties, as well as revocation of the operating licence” .

RBZ said the current interbank foreign exchange market was currently governed by the
willing seller – willing buyer concept, without making reference to the interbank foreign exchange rate.

“All the interbank trades shall be processed at a margin of plus or minus 7 percent,” RBZ said.

“The Bureaux de Change shall only sell foreign currency cash to individuals for foreign travel, upon submission of a passport. The current cash limits for Personal Travel Allowance of US$300 per day, per travel, and up to a maximum of US$10,000 per year, should strictly be adhered
to.”

The central bank ordered Bureaux de Change to endorse passports of travellers who would have purchased foreign currency as well as displaying the forex rates.

It said the Financial Intelligence Unit and Exchange Control Division shall ” immediately mobilise resources to enforce compliance by all foreign exchange market players” .

This is not the first time that bureaux de Change have been accused by authorities of illegal currency trades.

In 2002, then Finance and Economic Development minister Herbert Murerwa closed bureaux de change countrywide as part of efforts to curb illegal foreign currency dealings.

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