Mangudya explains management of surrendered foreign currency part of export proceeds

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has shed more light on the management of 25 percent foreign currency export proceeds to be surrendered to the bank by exporters.

Mangudya says the measures put in place by Finance and Economic Development Minister Mthuli Ncube are not meant to change statutory requirements or merge fiscal and monetary policy jurisdiction.

Apparently, among the new measures, Ncube said Treasury will now fund the Zimbabwe dollars paid to exporters when they surrender 25% of their forex.

Government will then use the forex that it buys to service central bank’s foreign currency loans, Ncube said.

Captains of industry and three government commissions had told the government last week that the Zimdollars printed by RBZ to pay the 25% was contributing to money supply growth.

Ncube hopes that this new measure will limit money supply, and help to tame inflation.

Zwnews