RBZ Governor,
Dr John Mushayavanhu, said that the foreign currency realised from export
surrender exceeded market demand, indicating that valid export requirements
were being met.
This
contradicts occasional complaints from businesses about foreign currency
shortages in the market, which allege that banks are unable to honour foreign
invoices due to a lack of available foreign currency.
Exporters are
required to surrender 30 percent of their export proceeds to the central bank
at the prevailing exchange rate. This ensures the availability of foreign
currency for non-exporting entities that require it to import critical inputs
for their operations, and also provides exporters with local currency to meet
their domestic obligations, such as statutory payments and taxes.
“We went into
the market (last week Thursday) as the central bank to sell forex from the
export surrender,” said Dr Mushayavanhu. “We went (into the market) with a
figure of about US$20 million.
“The banks were
only able to buy US$15 million. In other words, that was the demand that was
there in the market to clear all the outstanding invoices.
“Right now, as
we speak, if there is anyone who has an import invoice or who has a foreign
payment that they need to make outside the country and has not made it, they
can go to their bank and it will be honoured because we do not have a foreign
exchange problem. The supply of foreign exchange in this market compared to the
demand is higher,” Dr Mushayavanhu added.
The central
bank utilises export surrender proceeds to provide liquidity to the market,
complementing the foreign currency accessible through the Willing Buyer Willing
Seller platform.
Nevertheless,
businesses have reported difficulties in accessing foreign currency due to
shortages.
Meanwhile, Dr
Mushayavanhu urged informal businesses to formalise their operations to obtain
loans at reasonable rates and benefit from the Government-supported funding
facilities.
Responding to
audience questions during a podcast interview with ZTN Prime recently,
regarding the eligibility of informal businesses to access funding under the
Targeted Finance Facility (TFF), the RBZ governor said it was possible,
provided the businesses have bank accounts, a critical component of
formalisation.
Dr Mushayavanhu
also strongly encouraged the public to deposit their money in formal banking
institutions, highlighting the inherent risks associated with keeping cash at
home.
He noted the
growing robbery acts targeting individuals holding significant amounts of cash
outside of banks.
“You can do
mattress banking, but we are increasingly seeing robberies taking place. Your
money is safer in the bank.,” he said.
“We have put in
place measures where you can get interest on your investment in the bank.”
Dr Mushayavanhu
further pointed to the financial benefits of banking, noting that banks offered
interest on deposits, allowing individuals to earn returns on their deposits.
He also raised
concerns about the circulation of counterfeit currency within the informal
sector, a risk that banks are equipped to mitigate.
Dr Mushayavanhu
acknowledged the need for increased incentives to encourage greater public
participation in the formal banking system.
The episodes of
hyperinflation in the country have negatively impacted the savings culture, as
people’s savings were wiped in 2008 out due to inflation.
While the
Government has legalised the multi-currency regime until 2030, when the economy
is expected to have fully de-dollarised, giving depositors the freedom to
continue to save in more stable currencies such as the US dollar, higher
charges on bank transactions continue to discourage depositors. Herald
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