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Zimbabwe: Miners Engage RBZ Over Forex

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The Chamber of Mines of Zimbabwe (CoMZ) is engaging the Reserve Bank of Zimbabwe (RBZ) with a view to finding a solution to challenges caused by the new foreign currency regulations announced by the central bank in the Monetary Policy Statement.

Under the new foreign currency regulations, the exporters are no longer required to exhaust their foreign currency earnings as was the case previously, but the surrender threshold has been reviewed upwards from 30 percent to 40 percent.

It is against this background that some exporters, particularly in the mining sector, say they are now having shortfalls meeting their obligations that require foreign currency.

In an interview with the Herald Finance and Business, CoMZ chief executive officer Mr Isaac Kwesu, said miners are having to augment for the shortfalls by turning to the foreign currency auction system.

However, the challenge is that some of their bids are not going through, thus diminishing their ability to sustain production.

“It’s an issue that has come up with some members saying that the 40 percent foreign currency surrender is on the up side,” said Mr Kwesu.

“Depending on an individual exporter’s cost structure, some miners are having shortfalls in terms of their foreign currency needs and have had their capacity to sustain production curtailed.

“You will be aware of the foreign currency auction system and our members are also participating in it but unfortunately not every bid on the auction is always successful.

“So it is against this background that we are engaging the RBZ to consider giving priority to bids from exporters and not just miners but all the exporters because I think it’s ideal we pull all stops to make sure we sustain businesses that are bringing the forex in the first place,” he said.