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Zim’s central bank abandons its 60-day forex liquidation policy

PHILLIMON MHLANGA

The Reserve Bank of Zimbabwe (RBZ) has abandoned its exchange control requirement that compelled exporters to liquidate their export proceeds if not utilised within 60 days.

The decision by the central bank came after series of engagements with exporters, especially miners, who have been saying the stringent policy was chocking their operations.

The policy, the local miners said was not in line with production cycles in the mining sector.

Under the exchange control rule, exporters’ unutilsed foreign currency after the stipulated period would be immediately converted to Zimbabwe dollars at the prevailing exchange rate with the forex being offloaded to importers who participated on the foreign currency auction system.

The RBZ governor, John Mangudya, on Friday said the central bank’s Monetary Policy Committee decided to remove the 60-day foreign currency liquidation.

“The MPC met on January 7, 2021 and deliberated on measures to refine and enhance the sustainability of the Foreign Exchange Auction System. The MPC (resolved) to remove the compulsory requirement to liquidate all unutilised export proceeds after 60 days, with immediate effect,” Mangudya said.

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