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RBZ clarifies position on forex withdrawals

by Staff reporter
12 Oct 2019 at 10:27hrs | Views
THE withdrawal of individual free funds remains permissible in hard currency and the funds can be retained in Foreign Currency Accounts (FCA) indefinitely as rules have not changed, the Reserve Bank of Zimbabwe (RBZ) has said.

RBZ Governor Dr John Mangudya said this yesterday in response to growing uncertainty in the market as a result of multiple social media messages circulating suggesting the central bank has made policy changes on forex retention by individuals.

"The Reserve Bank of Zimbabwe has noted with concern that false information is being circulated through the media suggesting that the bank has changed the policy and administrative arrangements regarding the treatment of Nostro accounts and cash withdrawals. This follows the release via social media of an FBC Bank internal document," said Dr Mangudya.

"Please be advised that there has not been any change on the administrative arrangements regarding free funds. Free funds shall continue as such in line with the policy directives issued to Authorised dealers.

"As previously communicated, employees of international organisations, non-governmental organisations, and embassies shall continue to receive their salaries in foreign currency in Individual Nostro FCAs at the discretion of their employers."

Dr Mangudya said such free funds may be retained in the Nostro FCAs for an indefinite period and cash withdrawals remain permissible. He said holders of such funds may liquidate cash withdrawn from their accounts, or their account balances into local currency through a bank or a bureau de change to fund domestic transactions.

However, Dr Mangudya said exporters still have 30 days to utilise funds generated from exports. He said this was meant to facilitate funding of the interbank market for the importation of critical imports.

"As regards exporting entities, export receipts shall continue to be received through normal banking channels. Funds generated from exports shall continue to be administered in line with policies governing export proceeds which include settlement of bona fide foreign payments and liquidation on the interbank market of all unutilised balances after 30 days from date of receipt.

"This is to facilitate funding of the interbank market for the importation of critical imports for corporates and individuals without access to foreign exchange as is the case in other jurisdictions," said Dr Mangudya.

He urged members of the public to disregard any information that is not from the central bank's official communication platforms.

"Members of the public should therefore disregard the falsehoods being peddled through social and other media as such claims are not consistent with the exchange control policy on administration of foreign exchange," he said.

Source - the herald

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