Gold Exporter Says Producers Will Still Get All Their Forex

Fidelity Printers and Refiners (FPR) General Manager Mr Fradreck Kunaka has dismissed reports which suggest that all gold exporters will now be subjected to foreign currency retention threshold of 70 percent.

The reports followed the success of the auction-based system in improving foreign currency availability for producers. Kunaka said:

Nothing has changed as yet the same arrangements are still in place. However, gold companies will still cede some of their foreign currency earnings to the state at a retention threshold of 70/30

As from May 2020, Small scale gold miners have been paid 100 percent of their deliveries to Fidelity Printers and Refineries in foreign currency as the government seeks to curb gold leakages into the parallel market.

Previously, the state was offering small scale and artisanal miners up to 55 percent of their earnings in foreign currency with the remaining 45 percent paid in local currency at a fixed exchange rate.

Although quantities of gold sold to Fidelity Printers and Refineries have reportedly gone up, there are fears that some producers may resolve to sell the yellow metal on the parallel market over Fidelity’s late payment of their money.

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