25% Forex Surrender is here to Stay – RBZ Governor
Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu has said that the 25% forex surrender requirement imposed on revenue generated from all mineral exports will remain in effect, emphasizing its crucial role in maintaining foreign exchange liquidity in the economy.
by Rudairo Mapuranga
Speaking at the Chamber of Mines Annual Mining Conference 2024 held at Elephant Hills Hotel in Victoria Falls, Dr Mushayavanhu stressed the importance of this policy for Zimbabwe’s financial stability.
“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?” said Dr Mushayavanhu.
Former Chamber of Mines of Zimbabwe President Collin Chibaya had previously criticized the forex surrender requirement, describing it as an “unannounced tax” due to discrepancies between formal and informal exchange rates. Despite this, Dr Mushayavanhu underscored the necessity of the policy, linking it to the overall economic strategy and the stability of the new Zimbabwe Gold (ZiG) currency.
The governor highlighted that the ZiG currency, introduced as part of a broader monetary reform, has proven to be well-managed and stable.
“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.
Mushayavanhu also noted the improvements in the financial sector’s transparency and the introduction 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,” he said.
The 25% requirement excludes artisanal and small-scale gold miners.