Further to the issue of Exchange Control Directive RV176 of 2020 to operationalize the foreign exchange measures presented in the 2020 Mid Term Monetary Policy Statement, the following should be noted:
Standardization of Export Retention Thresholds
- The export retention threshold for exporters across all sectors is now at a standard level of 70%.
- POSB will immediately remit surrender portions of 30% on all receipts from export proceeds to the Reserve Bank of Zimbabwe in line with the current.
Review of Liquidation Period for Export Receipts
- The liquidation period from the date of receipt of funds for all unutilized export proceeds has been reviewed upwards from 30 days to 60 days.
Support of the Foreign Exchange Auction from Domestic Foreign Exchange Resources.
- 20% of foreign currency receipts from the local trade of goods and services shall be liquidated at the point of depositing in the Domestic FCAs, at the prevailing auction rate.
- These liquidations shall be remitted to the Reserve Bank of Zimbabwe daily.
- The remaining 80% shall be retained indefinitely in the Domestic FCAs for own use by the provider of goods and services.
- Recipients of free funds including Embassies, Non-Governmental Organizations, international organizations, churches, individuals, tobacco and cotton growers, Transitory accounts (including FCAs of fuel companies and airlines), Trust Accounts for law firms and real estate agencies, schools, tertiary institutions, and other non-profit organizations will be exempted from the 20% liquidation policy on Domestic FCAs
Foreign Exchange pricing of Goods and Services
- In accordance with Statutory Instrument 185 of 2020, providers of goods and services are now required to quote, display and offer prices for their goods and services in both local and foreign currency at the prevailing market exchange rate.
- The applicable market exchange rate for pricing purposes shall be the average weighted auction-rate with a tolerance level of up to 5% in line with the permitted spread in the interbank market.
Toll-Free Lines to Enforce Compliance with Auction Rates
The Reserve Bank of Zimbabwe has set up the following toll-free lines for the reporting of any deviant pricing practices in the market:
- 0800 6009 – for Telone lines
- 0808 6770 – for Econet lines