RBZ Governor Reaffirms 25% Forex Surrender Requirement for Mineral Exports

John Mushayavanhu
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VICTORIA FALLS, Zimbabwe,– Reserve Bank of Zimbabwe (RBZ) Governor Dr. John Mushayavanhu has reiterated that the 25% foreign exchange surrender requirement on revenue from all mineral exports will remain in place.

Speaking at the Chamber of Mines Annual Mining Conference 2024 at Elephant Hills Hotel, Dr. Mushayavanhu emphasized the critical role of this policy in sustaining foreign exchange liquidity within the economy.

Dr. Mushayavanhu highlighted the necessity of compliance from the mining sector, which is the primary source of foreign exchange for Zimbabwe. “I want the mining sector to appreciate that since they are the major contributor to foreign exchange in this country, they should comply when we say we want the surrender to be 25 per cent. If the producers of 70 per cent of the forex come to us and say they want to surrender zero, where is this country going to get forex?” he stated.

Despite criticism from former Chamber of Mines of Zimbabwe President Collin Chibaya, who described the forex surrender requirement as an “unannounced tax” due to discrepancies between formal and informal exchange rates, Dr. Mushayavanhu defended the policy. He linked it to Zimbabwe’s overall economic strategy and the stability of the new Zimbabwe Gold (ZiG) currency.

The governor praised the smooth transition from Zimbabwe dollars to the ZiG currency, introduced as part of broader monetary reforms.

“The transition from Zimbabwe dollars to ZiG has been smooth. We have maintained that at all times, ZiG is backed by reserves. This stability has resulted in price stability and even a slight deflation in recent months,” he explained.

He also noted the improvements in the financial sector’s transparency and the implementation of new measures to manage liquidity and maintain a stable exchange rate. “We have in the central bank introduced what we call the governor’s daily dashboard, which allows us to monitor key economic indicators in real-time,” he added.

The RBZ’s commitment to these policies aims to foster confidence in the local currency and ensure the sustainability of Zimbabwe’s economic growth, particularly in the mining sector, which remains a significant contributor to the nation’s foreign exchange earnings.

“As the country navigates these economic reforms, the central bank’s stance on the forex surrender policy remains firm, aligning with broader efforts to stabilize the financial system and promote a resilient economic environment,” Dr. Mushayavanhu concluded.

Notably, the 25% forex surrender requirement excludes artisanal and small-scale gold miners.