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Forex Retention Thresholds For All Exporters Now 70 Per Cent

Forex Retention Thresholds For All Exporters Now 70 Per Cent

The Reserve Bank of Zimbabwe (RBZ) has set the foreign currency retention threshold for all exporters at 70 per cent with immediate effect.

This was revealed in the Central Bank’s Monetary Policy Statement released earlier on Friday.

Previously retention thresholds for exporters were set at different levels depending on the sectors.

Miners were allowed to keep 70 per cent of their forex earnings while tobacco farmers retained only 50 per cent with the rest disposed of at the ruling exchange rate. The statement read:

Given the positive impact of the auction system in price stability and the need to sustain the auction, all export retention thresholds for all exporters will be at a standard level of 70 per cent with immediate effect

The RBZ has also extended the 30 day liquidation period of unused funds to 60 days from the day of receipt of funds.

In June the Central Bank introduced the foreign currency auction system to replace the interbank market exchange rate system which was introduced in 2019.

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