Dr. John Mangudya, Reserve Bank of Zimbabwe (RBZ) Governor, announced that the government will this year pay cotton farmers half of their money in foreign currency.
This was confirmed by Vangelis Haritatos, Deputy Minister of Lands, Agriculture, Water, Climate and Rural Resettlement.
The remaining 50% will be paid in RTGS dollars.
Cotton farmers will be paid 50 percent of their money in foreign currency through their nostro accounts and 50 percent in RGTS dollars.
Deputy Minister Haritatos reiterated Mangudya’s announcement and said finer details will be made available soon. He said:
Foreign currency retention for cotton has been necessitated since the new monetary policy statement. This is the first time that cotton farmers are being considered for payment in foreign currency and the balance in RTGS currency.
Before it was 1:1, whereas this time Government is considering giving farmers a portion in USD and the balance in RTGS.
Haritatos further revealed that the Agricultural Marketing Authority (AMA) has already started establishing markets for cotton.
Cotton council spokesperson, Mr. Garikai Msika, welcomed the development and urged that this is extended to other crops too.
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More: The Herald