Export earnings boost RBZ coffers by nearly US$1 billion

The Reserve Bank of Zimbabwe (RBZ) says it has since January this year accumulated over US$950 million from the 30 percent earnings surrendered by exporters in exchange for the Zimbabwe Gold (ZiG).

 

In February, the central bank revised the export retention threshold from 75 percent to 70 percent, meaning exporters now surrender 30 percent of their foreign currency earnings for conversion into the ZiG at the official exchange rate.

 

According to RBZ Governor Dr John Mushayavanhu, the total foreign currency brought in through the surrender system since the beginning of the year amounts to more than US$950 million.

 

The monetary authorities explained that the policy seeks to increase the supply of foreign currency on the interbank market, strengthen Zimbabwe’s gold reserves, and assist in the settlement of government obligations.

 

Development economist Dr Prosper Chitambara said the policy demonstrates the country’s growing export performance and the central bank’s efforts to channel resources towards national priorities.

 

“It reflects that as a nation we are exporting more and that the central bank is ensuring export proceeds are being put to good use. My hope is that this positive trajectory will be maintained,” said Dr Chitambara.

 

Economist Dr Zack Murerwa noted that the system has helped stabilise the official exchange rate while easing activity on the parallel market.

 

“This reflects commitment by the central bank to transparency and accountability in the way it conducts business. It is a welcome initiative, but going forward the authorities should also consider exporters’ concerns and review the current framework,” he said.

 

The RBZ added that all export surrender proceeds are paid at the prevailing mid-exchange rate, which is higher than the Willing Buyer–Willing Seller rate.

 

Zimbabwe’s key exports include gold, platinum, nickel, diamonds, chrome, blueberries, coffee, and tobacco.

 

ZBC