Exporters can hold 65% forex

EXPORTERS can now retain 65% of their export proceeds into their Foreign Currency Accounts for an indefinite period, the Reserve Bank of Zimbabwe has announced.

Prior to the latest changes, exporters were required to liquidate 65% of their foreign currency earnings within 30 days from the date of acquittal of the export receivables.

Farmers growing crops for export will also with immediate effect be allowed to keep 100% of their export earnings in their individual FCAs, again for an indefinite period.

The Reserve bank said exporters with funds, which had been liquidated between November 1 and November 7, 2007 under the previous 30-day liquidation period requirement, would be reimbursed.

“The Reserve Bank fully appreciates the need for exporters to adequately budget their usage to meet their input requirements,” said Reserve Bank governor Gideon Gono.

“It has been observed that, in some instances, it has not been possible for some exporters, for example, in the tourism sector, to accumulate adequate foreign currency resources in 30 days, necessitating the need for the review of the retention period.”

Gono said the move would help exporters to adequately budget their foreign currency usage to meet input requirements.

Farmers would also be able to finance procurement of the imported inputs to boost production while meeting other foreign currency obligations.

“These measures are meant to ensure that exporters continue to have sufficient time to plan for the procurement of their import requirements to sustain production and exports,” he said.

Gono advised farmers to venture into export-oriented projects to generate hard currency for personal requirements “as the Reserve bank will not be entertaining requests of a personal nature”.

Post published in: Economy

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