Exporters ordered to surrender forex

The government had directed that all exporters surrender 40 percent of their foreign currency earnings to the Reserve Bank of Zimbabwe as it steps up efforts to improve foreign exchange resources for the importation of fuel and electricity, the state-controlled ‘Herald’ reported on Tuesday. According to the report, the new policey came into effect on Monday.

The directive comes in the wake of the central bank’s failure to control the foreign currency black market, where the bulk of foreign exchange transactions are now taking place, the ‘Herald’ reported. It said that currently exporters were required to surrender 25 percent of their export proceeds to the Reserve Bank of Zimbabwe and retain the remaining 75 percent for their own use. Highly placed sources within the Ministry of Finance and Economic Development said the government was also proposing to reduce the holiday travel allowance from US $5,000 to US $2,500 per year.

“In times of acute foreign exchange shortages, foreign holidays are not essential. Besides, it is necessary to support domestic tourism, in the face of reduced foreign tourist arrivals.
This measure will be reviewed annually depending on the foreign exchange situation,” a source was quoted as saying. The report also said it was understood that the government was considering limiting the amount of foreign currency held by the bureaux de change to not more than US $100,000 at any time.