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RBZ brings back the US Dollar

by Mandla Ndlovu
25 Jul 2019 at 10:26hrs | Views
The Reserve Bank of Zimbabwe has partially re-introduced the recently outlawed used of foreign currency for some sectors of the economy.

In an Exchange Control circular No 8. of 2019 RBZ said oil firms, chrome miners, embassies and international organisations could conduct local transactions in foreign currencies.

The Central Bank said those earning foreign currency could buy fuel in dollars and that chrome mining firms could buy chromium from small scale producers in foreign currency.

The Central Bank further clarified the amount of foreign currency that an individual is allowed to purchase when they want to travel outside the country.

Read some of the paragraphs below:

The amount of foreign currency that may be sold to an individual for business travel allowance shall be equivalent to USD400 per day and up to a maximum of 7 days per travel.

The amount of foreign currency that may be sold to an individual for personal travel/holiday allowance shall be equivalent to USD300 per day and up to a maximum of 7 days per travel up to an equivalent of US$10,000 per year.

Under this framework, in addition to person to person remittances, a bureau de change may receive and pay out international remittances sent by International Organisations, Non-Governmental Organisations, etc., who will be sending salaries, pensions, donations, gifts, prize money, relief aid and corporate social responsibility contributions. For the avoidance of doubt, business to person transactions shall be restricted to inward transactions only.

The business to person transfer shall not be used to transmit export proceeds, loan proceeds, income receipts (excluding salaries) or capital flows. The reason for transfer must, therefore, be declared clearly on the receipt form.

With effect from 24 July 2019, bureaux de change may sell foreign currency to the individuals for the purposes of funding foreign tuition fees, medical expenses and foreign subscriptions.

The selling of the foreign currency for such purposes shall be on a Willing Seller and Willing Buyers principle.

Source - Byo24News