The government has gazetted a regulation introduced by the Reserve Bank of Zimbabwe (RBZ) last month that limits the amount of USD cash travellers can take out of the country.
Individuals are now permitted to carry a maximum of US$2,000, reduced from the previous limit of US$10,000.
Last week, the Bankers Association of Zimbabwe (BAZ) warned that this restriction could disrupt the informal import trade and potentially result in job losses within the informal sector. BAZ said:
<blockquote>
[We saw the] reduction of the foreign currency an individual can take out from the country from US$10 000 to US$2 000. [Thus the] reduction in externalisation of funds. [This will see the] disruption to informal import trade, with more transactions taking place underground.
</blockquote>
However, the government has enacted Statutory Instrument 166 of 2024, which reduces the amount of United States dollars a traveller can take out of the country, despite protests from bankers.
The new regulations, which can be cited as Exchange Control (General) (Amendment) Order, 2024 (No. 21) reads:
<blockquote>
IT is hereby notified that the Reserve Bank of Zimbabwe, in terms of section 40 of the Exchange Control Regulations, 1996, and with the approval of the Minister of Finance, Economic Development and Investment Promotion, has made the following order: –
1. This order may be cited as the Exchange Control (General) (Amendment) Order, 2024 (No. 21).
2. The Exchange Control (General) Order, 1996, published in Statutory Instrument 110 of 1996 (hereinafter called “the principal order”) is amended in section 13 (“Exports”) in subsection (1) by the repeal of paragraphs (b) and (c) and the substitution of-
“(b) the maximum amount of Zimbabwean currency notes and coins that may be taken out of Zimbabwe on the person or in the baggage of a person leaving Zimbabwe shall be an amount equivalent to two thousand United States dollars;
(c) the maximum amount of foreign currency that may be taken out of Zimbabwe on the person or in the baggage of a person who is leaving Zimbabwe shall be a total of two thousand United States dollars or its equivalent in any other currency or combination of currencies.”
3. Section 14 of the principal order is repealed and substituted by-
“Possession of currency in the departure or transit lounge
14 (1) The amount of Zimbabwean currency that a person who is about to leave Zimbabwe may possess, without authorisation in terms of section 22 of the Exchange Control Regulations, 1996, Statutory Instrument 109 of 1996, in the departure or transit lounge of an airport or other port of entry or exit, shall be an amount equivalent to two thousand United States dollars.
(2) The amount of foreign currency that a person who is about to leave Zimbabwe may possess, without authorisation in terms of section 22 of the Exchange Control Regulations, 1996, Statutory Instrument 109 of 1996, in the departure or transit lounge of an airport or other port of entry or exit, shall be a total of two thousand United States dollars or its equivalent in any other currency or combination of currencies.”.
4. The Exchange Control (General) (Amendment) Order, 2023 (No. 20), published in Statutory Instrument 20A of 2023, is repealed.
</blockquote>
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Zimbabwe has a new rule that says travellers can only take $2,000 USD out of the country, instead of $10,000 USD. Some people are upset because this could hurt businesses that do informal importing and lead to job losses. The government made this rule despite protests from bankers. The rule is in a document called Statutory Instrument 166 of 2024. There are also new rules about how much money people can have at the airport before leaving the country.

Zimbabwe Sets New USD Cash Limit for International Travellers

The Reserve Bank of Zimbabwe (RBZ) on Wednesday doubled the amount of foreign currency in cash someone can physically carry on their person or in their baggage out of the country to US$10 000, reported <a href="https://www.herald.co.zw/travellers-can-now-take-out-us10-000-cash/">The Herald</a>.
RBZ Governor John Panonetsa Mangudya announced the new cash limit in a Statutory Instrument made in terms of the Exchange Control Act.
The US$10 000 limit in baggage or pocket can be cash in any foreign currency, gold coins, or in any desired combination of foreign currencies or gold coins.
Travellers can also take out the equivalent of US$1 000 at the interbank rate in “demonitised” Zimbabwean notes and coins.
According to the new regulations, anyone intending to carry more than US$10 000 in notes and coins, rather than making electronic transfers, requires exchange control approval.
However, diplomats are not subject to these limits.
An economic commentator, Prosper Chitambara, said the new regulations are a welcome development. He said:
<blockquote>
It is an improvement from the US$5 000 that was there before and it’s meant to relax capital controls in terms of the export of cash.
It’s critical in terms of engendering greater levels of confidence within the economy.
The more relaxed the control, the greater improvement in confidence in the economy.
</blockquote>
However, Harare-based economist Gift Mugano argued that the legal instrument will result in more foreign currency being taken out of the country. Said Mugano:
<blockquote>
It does not stimulate economic growth but rather will expedite the draining of foreign currency from the country.
The net effect of this is a liquidity crunch particularly now since we are now dollarised.
You are aware that we have a large informal sector and by increasing the amount of money that can be taken out of the country to US$10 000, we have really taken a position to take oxygen out of our system.
The most important exchange controls which must be dealt with relate to export retention and liberalisation of the exchange rate.
Increasing foreign currency which can be taken out is merely draining oxygen from our system.
</blockquote>
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