The Monetary Policy Committee (MPC) of the Reserve Bank of Zimbabwe (the Bank) met on 7 January 2021 and deliberated on measures to refine and enhance the sustainability of the Foreign Exchange Auction System. The MPC made the following resolutions in respect of surrender and liquidation of foreign exchange receipts: -
(a) To remove the compulsory requirement to liquidate all unutilised export proceeds after 60 days, with immediate effect.
(b) To increase the Export Surrender Requirement from 30% to 40% on all export receipts, with immediate effect.
(c) To maintain the liquidation requirement for domestic foreign exchange sales at 20% net of sales tax, with Authorised Dealers required to remit funds to the Bank in the currency of receipt.
(d) To ensure that the allotment of foreign currency on the Foreign Exchange Auction and Interbank market continues to be guided by the priority list which places productive imports (raw materials, consumables and capital goods) ahead of foreign exchange requirements for services, education and portfolio investment.