Zimbabwe has reduced foreign currency retention by exporters from 75% to 70% to guarantee continued stability in the interbank foreign exchange market.
The move, announced in the Reserve Bank of Zimbabwe’s Monetary Policy Statement yesterday, is also aimed at building critical foreign currency reserves needed to anchor the local currency, the ZiG.
The central bank also removed limits on funds that can be accessed from the Foreign Exchange Interbank Market that had been set at US$500 000 and US$100 000 for Primary and Secondary users of foreign exchange, respectively, per week, per entity.
It will issue streamlined Foreign Exchange Interbank Market Guidelines to operationalise the refinements on the exchange rate management system and removal of foreign exchange trading limits.
Below is the Monetary Policy Statement at a glance:
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