Wednesday, 11 May 2016


The Reserve Bank of Zimbabwe (RBZ) has assured the business community that it has no appetite to print bond notes beyond the $200 million facility.

Following concerns and fears from the local market on whether the Apex Bank will not print more bond notes, RBZ Governor, Dr John Mangudya has told captains of industry who attended the Zimbabwe National Chamber of Commerce (ZNCC) breakfast meeting that the central bank has no capacity to print beyond the limit as the service will be done outside the country.

The exporters’ incentives is set to be funded by bond notes backed by a US$200 million Afreximbank Nostro Stabilisation and Export Finance Facility.

Dr Mangudya, who bemoaned the illicit financial flows and lack of discipline on the market, clarified to business that the proposed bond notes are meant to incentivise exporters in order to boost foreign earnings.

Meanwhile, Dr Mangudya has announced that there will not be compulsory conversion of export earnings into other currencies within the basket of currencies as earlier pronounced.

The development means that exporters can now return the 100% of the export earnings following recommendations from industry.

While acknowledging the objective to boost export and grow the economy, industry has appealed for sincerity on the part of the central bank on ensuring that there is no overregulation of the market.

As part of the recommendations, business has appealed to the RBZ Governor to extend the 5% incentive to companies promoting import-substitution.


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