Zimbabwe Central Bank issues revised forex market guidelines

The Reserve Bank of Zimbabwe (RBZ), through its Exchange Control department, has issued updated guidelines and compliance parameters for the interbank foreign exchange market, emphasizing the limitation of forex invoices to no more than two banks.

This measure is intended to manage pipeline demand and prevent duplication of invoices, with companies required to make appropriate declarations through the importer's declaration form before submitting new requests.

The RBZ also highlighted the importance of efficiently utilizing foreign exchange resources and discouraged speculative stockpiling. The central bank injected over US$50 million into the interbank market to supplement liquidity and noted that nearly US$200 million has been traded on the interbank market since the introduction of the new currency in April 2024.

Companies with sufficient foreign currency balances are urged to utilize these funds before accessing the interbank market, and strict compliance with Exchange Control rules is mandated, with penalties for violations.

RBZ Governor Dr. John Mushayavanhu reaffirmed the bank's commitment to maintaining the stability of the new currency, the ZiG, which is fully backed by foreign reserves and precious metals like gold.

The RBZ has significantly increased its reserve coverage ratio, with total foreign reserves reaching approximately US$375 million by the end of June 2024, reflecting a robust backing of the new currency and the country's ability to meet import requirements.