Central Bank has increased foreign currency payments processed through the bureaux de change for micro, small and medium enterprises (MSMEs) and individuals to US$5 000 per month from the initial US$500 per week starting from 15 August 2022.
These foreign currency payments include for medical expenses, educational expenses (including student upkeep), business and holiday travel, airfares and subscriptions.
Central Governor John Mangudya revealed the latest developments whilst presenting the Mid Term Policy Statement yesterday.
The Policy Statement was entitled Restoring Price and Exchange Rate Stability.
Mangudya went on the say Bureaux de change shall continue to operate under the basis of the willing-buyer willing seller arrangement, where there is no cap on the amount they can purchase from the sellers of foreign currency.
The authority also increased the limit for qualifying transactions under the willing-buyer willing-seller foreign exchange trading system US$20 000 per week from US$10 000, with effect from 15 August 2022.
“Qualifying foreign exchange payments under this mechanism will cater for transactions for goods and services such as raw materials, capital goods, medical expenses, education expenses (including student upkeep), business and holiday travel, airfares and subscriptions,” Mangudya said.
Zimbabwe has been limiting access to foreign currency to shortage of money from other countries.
The Central Bank made no changes to the foreign exchange retention thresholds for agricultural exporters (tobacco, cotton, tea, coffee and horticulture) retaining 75% and the tourism sector retaining 100%.
The Foreign Exchange Auction System shall continue.
Mangudya said, ” In this context, the foreign exchange auction system is no longer a price discovery mechanism but instead the most ideal allocative platform of foreign currency in the domestic economy given the geo-political constraints facing the local banking industry to establish an efficient interbank foreign exchange market