The Reserve Bank of Zimbabwe (RBZ) reneged on its earlier commitment to pay tobacco farmers 50% of their sale proceeds in foreign currency.
In a circular released on Tuesday, the RBZ said farmers will now effectively be paid 100% in RTGS dollars (ZWR). The circular read in part:
Merchant is going to get 100% RTGS$ to enable the purchase of tobacco. The farmer will get 100% RTGS$ sales proceeds after deducting all other costs.
The farmer will have to, if they require the foreign currency, buy back the 50% foreign currency component using sale date exchange rates and the foreign currency will be credited in their local FCA (foreign currency) account with their bank.
The 2019 tobacco marketing season commenced on Wednesday.
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