The Reserve Bank of Zimbabwe has adhered to the prayer by chrome producers concerning predatory chrome buying which was fueled by lack of clarity on the recently gazatted Statutory Instrument 142 of 2019 which banned all local forex transaction.
Chrome Producers wishing to receive payments in foreign currency from chrome buyers are required to open an Exports Nostros Account in order to enable chrome buyers to send payments in forex.With this new update, the Nostro Export Account enables Chrome miners to receive funds from a domestic / local transaction but the rules still apply on retention at 50% .
According to National Chrome producers’ representative member Masango Mahlahla, the updated Circular was issued to correct the additional negative impact that occurred when all forex payments were banned for domestic transactions.
“RBZ was notified of the damaging impact this would have on small scale chrome operations and as a result issued the above revision to stop the predatory buying which is taking place domestically” he said.
According to Mahlahla the publication of the SI 142 led locally operating Chrome Buyers to pay small scale chrome miners in Zimbabwean dollars and used the RBZ rules as an excuse.
“Chrome Miners require forex to run operations. Most miners export chrome indirectly, meaning that the chrome is often sold to larger exporters / local buyers and smelters who in turn receive the forex from international chrome sales” he said.
According to the new RBZ Exchange Control Regulations, Nostros Transitionary Accounts which received funding from Export Proceeds can only send payments to Exports Nostros Accounts when buying chrome from a Producer / miner regardless of whether the person or group is registered as an individual or a company.