The Chamber of Mines of Zimbabwe has confirmed that it has entered fresh negotiations with the Reserve Bank of Zimbabwe (RBZ) regarding the current foreign currency retention framework.
Under the existing policy, exporters are compelled to surrender 30% of their export earnings to the central bank at the official exchange rate, while retaining the remaining 70%.
Speaking to the Zimbabwe Independent, the chamber’s chief executive, Isaac Kwesu, said there is a pressing need for a policy framework that strikes a balance between the foreign currency requirements of the government and other sectors, without compromising the financial viability of export-oriented businesses. Said Kwesu:
The chamber is engaging the Central Bank on an optimal foreign exchange framework that will balance the requirements of government without undermining the operations of the exporting companies.
The Chamber of Mines has raised concern over the widening gap between the official and parallel exchange rates, saying it is eroding the value of surrendered export earnings.
This, the body warns, is constraining working capital and undermining the mining sector’s capacity to fund essential imports such as machinery, spare parts, and consumables.
Industry executives are now pushing for full retention of export proceeds or, alternatively, for surrendered earnings to be calculated using a market-based exchange rate.
Some stakeholders have also floated the idea of reintroducing offshore retention accounts to safeguard export earnings and improve access to foreign currency.
The mining sector remains Zimbabwe’s biggest foreign currency earner, contributing over 75% of the country’s total export receipts.
More: Zimbabwe Independent
Leave a Reply Cancel reply