1.1. Following the Monetary Policy measures announced by the Governor, Dr. J.P. Mangudya on 4 May 2016 to deal with cash shortages whilst simultaneously stabilising and stimulating the economy, Exchange Control is issuing operational modalities outlined in this ECOGAD8/2016 for ease of implementation by Authorised Dealers.
2. RESTORING AND PROMOTING THE MULTI-CURRENCY SYSTEM
2.1. Foreign Exchange Stabilisation and Incentive Support Facility
2.1.1. The Reserve Bank has established a USD200 million foreign exchange and export incentive facility which is supported by the African Export-Import Bank (Afreximbank) to provide cushion on the high demand for foreign exchange and to provide an incentive facility of up to 5% on all foreign exchange receipts, including tobacco and gold sale proceeds.
2.1.2. In order to mitigate against possible abuse of the facility through capital flight, this facility shall be granted to qualifying foreign exchange earners in bond coins and notes which shall continue to operate alongside the currencies within the multi-currency basket and at par with the USD.
2.1.3. The Zimbabwe Bond Notes of denominations of USD2, USD5, USD10 and USD20 shall, therefore be introduced in future, as an extension of the current family of bond coins, for ease of portability in view of the size of the USD200 million backed facility. The facility shall also be used to discount trade related paper in order to provide liquidity for business trading operations.