BREAKING: Forex retention for all minerals to be reduced to 15% by 2024
Government has announced that forex retention for all minerals will be to be reduced to 15% by 2024.
In a document dubbed “Macroeconomic policy measures to support the 5-year de-dollarisation strategy,” the government outlines the steps to be taken to a complete de-dollarisation and in it are measures of reducing export retention thresholds to build national forex reserves.
The government looks to drastically reduce forex payments to exporters to 15% by 2024. Miners and Mining companies are by default exporters and are affected by the new measures which were made public on the 15th of April 2020.
GOLD
For the remainder of 2020 Fidelity Printers and Refiners will pay gold miners 55% in foreign currency and 45% in rtgs dollar. The forex retention percentage will be reduced by 10% and increased for the rtgs dollar by 10% yearly until 2024.
Simplified if a gram of gold is fixed at US$50 till 2024
- To December 31, 2020, Fidelity will pay US$27.5 and 22.5 in local currency
- In 2021 Fidelity will pay US$22.5 and 27.5 in local currency
- In 2022 Fidelity will pay US$17.5 and 32.5 in local currency
- In 2023 Fidelity will pay US$12.5 and 37.5 in local currency
- In 2024 Fidelity will pay US$7.5 and 42.5 in local currency
Other minerals
Forex retention for the rest of the minerals will also be reduced to 15% by 2024.
Forex retention
| Mineral | Year 2020 | Year 2021 | Year 2022 | Year 2023 | Year 2024 |
|---|---|---|---|---|---|
| Gold | 55% | 45% | 35% | 25% | 15% |
| Other Minerals | 60% | 45% | 35% | 25% | 15% |