RBZ boss Mangudya buckles

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The Reserve Bank of Zimbabwe (RBZ) has buckled under pressure, scrapping the requirement for the apportionment of export receipts in the South African rand and the euro following an outcry from exporters.

BY BUSINESS REPORTER

RESERVE-BANK-GOVERNOR-JOHN-MANGUDYA-(2)

In a notice yesterday, RBZ director of exchange control Moris Mpofu said the tweaking of the policy was in “recognition of the need to improve the ease of doing business, improve exporter viability and competitiveness while further enhancing the spread of liquidity generated from exports of goods and services, the production and marketing of tobacco and gold”.

Mpofu said authorised dealers of all new foreign exchange receipts from exports of goods and services denominated in the United States dollar “shall be transferred to the Reserve Bank immediately on receipt and the remainder credited in the exporter’s foreign currency account (FCA) in dollars.

“On receipt of the 50% export proceeds into its nostro account, the Reserve Bank shall immediately credit the same amount plus 5% export incentive/bonus in US$ into the authorised dealer’s RTGS [Real Time Gross Settlement] account for the account of the exporter,” he said.

“Accordingly, the requirement for the apportionment of 50% of foreign exchange into 40% South African rand and 10% euro has been removed with immediate effect.”

In his measures to promote the use of the multi-currency regime and solve the cash crisis, RBZ governor John Mangudya last week decreed that 40% of all new export proceeds, including tobacco and gold, were going to be converted at the official exchange rate to the South African rand and 10% to euros.

The measure became operational with effect from May 5.

“This policy measure is designed to ensure that we spread the demand for cash among a wide range of currencies and in order to mitigate against concentration risks,” Mangudya said.

The move was condemned by exporters who argued that the RBZ was forcing them to hold a volatile currency like the rand, warning the central bank was “killing the goose that lays the golden eggs”.

Mpofu said where exporters’ foreign currency earning based on the currency declaration forms, known as CD1, acquittals “are denominated in other currencies in the multi-currency basket, such proceeds shall be credited 100% into the respective exporter’s corporate FCA”.

He said a 5% export incentive would be paid into the US$ FCA.

Mpofu also added on the top of the priority list transactions such as remittance of rental income from properties owned by non-resident Zimbabweans and foreigners, remittance of pension income for non-resident Zimbabweans who formally emigrated from Zimbabwe and the importation of packaging material not available in the country.

Last week, Mangudya announced a priority for imports meant to ensure the scarce resources are deployed towards importing raw materials to boost local industries.

Mpofu also announced the scrapping of a 10% threshold on nostro balances and removal of a 15% threshold on cash holdings by banks. The two thresholds were removed with effect from yesterday.

53 COMMENTS

  1. Surely, does this guy know what he is doing? Either he is getting some instructions elsewhere or he is just incompetent. The RBZ team are not thinking at all , tinomama chete gore rino!!!!

  2. Ken Yamamoto described the current Governor as a “fencepost tortoise”. It isonly the Governor who changed the rest of Gono’s machinery is still intact including those pulling the strings from behind. Do not be surprised by these flip-flops. More to come.

  3. John Bonds is just trying to do what he thinks will work.It is just an experiment even he himself is not sure will work.Only that its an unfortunate experiment which involves the lives of people.

    • we experimented with the same concept in 2008 who in their right mind keeps on implementing a policy that did not work before that is why we are here. No innovation no new ideas we keep on trying the same things expecting a different out come asi hapana difference

  4. John Bonds is just doing an experiment even he himself is not sure if it will work.its just unfortunate this experiment involves our livelihoods.

  5. The rpoblem is as kanye says we surrounded by the wolves. Whatever he does someone wants to make sure they personally profit.

  6. Thumps up Dr Mangudya….thats the whole point of governance…once you see that a policy is not working, change it….in this deflation these measures need to be implemented lets free up our markets and allow for business to flourish

  7. John Bonds honaka wewe ukumuka uchiti Bond rakaenzana ne Dolla…..dai zvaiita hanty Zuma ingadai akangomuka pa tv achiti rand raenzana ne Dolla. Zvino tichaona because the market will determine the power of tht bond and the exchnge rate. As it stands, Dolla is on demand where as there is no demand for your bond, saka ndiine ma bond ako aya ndichida ma US, ndakaenda paCoppa cabbana apa boiz rongosasa kuti 10 bond is equal to 2 US ndoo pauchaona kuti hauna kungwara papo, u have created another problem ukuda kuti tambudza wewe JOna.

  8. so since the 5% incentive will be credited into the exporter’s accounts in USD terms, does that mean there is no more Bond Note?

  9. If properly managed this can work , as what the GERMANS did with there currency to pay local bills such as land development levies to the government.

  10. @ Gumandafa. The problem we have in Zim is that no one but a fool trusts Bob and his Zanu pf govt. This is the result of constantly rigging elections. They’re illegitimate and have stolen people’s pensions and savings before by printing worthless Zim$. We still remember Gono’s useless policies. All these guys should actually be in jail for that theft if Zimbabwe was a proper country. Would you trust that Bob is going to be responsible with the bond note this time around? I know the answer to that question and its a big NO!
    This is why people are panicking and rushing to get their money out of banks.
    Civil servants will be the hardest hit because they will be paid with this useless bond paper.
    What govt must do is reduce the size of its civil service and come up with investor friendly policies to encourage job creation and economic growth. In other words, Mugabe has to resign.

  11. My buddy’s step-mother makes $84 an hour on the laptop . She has been fired for 9 months but last month her payment was $14461 just working on the laptop for a few hours. site link..J1.

    ——- w­w­w.R­e­v­i­e­w­8­0.c­o­m

  12. @bob vana vaTsvangson they a marching 4 a change ko imi what a you marching for? Kumachira scud. Just listen to your governor, another gono resurfaces again manje economy haisarudzi newevo unopamama chete just wait and c

  13. What this country needs is sacrifice. An investor who will put their money in Minerals with a quota used to run a transparent recovery fund. Zvema bond hazvishande coz we are not addressing the fundamentals of economics. If we don’t go back to the drawing board and apply proper economic principles and not come up with our own our economy will never recover. Kugara MuZim inenge kutamba russian roulete chaiko

  14. I suppose this obviously is not the case here…but how many great ideas in history died because they were poorly communicated. ??? The Governor might have his heart in the right place but his PR people are letting him down BIG time. I think he has to stop appearing like someone who is always in a CONFUSED rush..One has to ask, rush to where?

  15. MaDr edu aya?? Copy and paste yegayega…now we can see kuti varume ava havana kudziidza. How then do we expect to attarc FDI with such flip flopping of policies????

  16. My buddy’s step-mother makes $84 an hour on the laptop . She has been fired for 9 months but last month her payment was $14461 just working on the laptop for a few hours. site link….

    ——- w­w­w.­M­a­x­P­o­s­t­­3­0­.c­o­m

  17. There is nothing they can do if these sanctions remain in place, the economy will remain vulnerable, any effort will be like dancing on one position.

  18. My buddy’s step-mother makes $84 an hour on the laptop . She has been fired for 9 months but last month her payment was $14461 just working on the laptop for a few hours. Start Here…K1…

    ——-w­­w­­w.­M­a­x­P­o­s­t­­3­0­.­c­o­m­

  19. Mangudya idofo remadofa , Gono tried it and failed the very same test. Ave kunzi nyora ma corrections atadzikwa na Gono odzokorora kikikiki. kana takaita mwana we grade seven Governor haadzokorore zvakaitika 2008 anoramber . By the way which school did he attended

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