Zimbabwe to tighten forex market, says Chinamasa

Government says Zimbabwe will go through a transition of moving from an over liberated foreign exchange market to a controlled one in order to deal with cash leakages which have resulted in liquidity constraints.

Finance and Economic Development Minister Patrick Chinamasa told the national assembly in this week's questions without notice session that the biggest challenge the nation faces is that most people earn currency which they are not generating through productive exports.

The minister said this is the reason why the country had to introduce bond notes to incentivise exporters who are actually earning foreign currency on behalf of the country.

Government has lamented that revenue leakages resulting from casual foreign currency controls are the major cause if current cash shortages.

The move to introduce bond notes is expected to help address the challenge while rewarding those who earn foreign currency through production.