Zimbabwe is said to have lost over 30 tonnes of gold last year through smuggling. The leakages have been attributes to unfavourable pricing following the widening disparity between the bond note and the US dollar.
Gold Miners Association chief executive, Irvine Chinyenze said that the 55% retention for all gold miners will have a negative impact on gold mining as smuggling will likely increase. In an interview with Business Times, Chinyoka said:
The central bank has totally lost it on this one as it promotes smuggling and leakages. With the retention level at 70% forex, we were given very low proceeds way below the world market price as they are all pegged in US dollars.
A range of between 20 and 30 tonnes of gold was said to have been smuggled to South Africa. Given the newly announced retention level [of 55%], most gold will be smuggled as small-scale gold miners will look for better markets. Certainly, deliveries will go down.