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RBZ monetary policy highlights
25/08/2014 00:00:00
by The Source

RESERVE Bank of Zimbabwe governor John Mangudya presented his maiden monetary policy statement on Monday.

Below are the highlights:
  • Remittances

For the period January to June 2014, international money transfers amounted to $845.6 million, of which Diaspora remittances were $412.4 million and international organisations, such as NGOs, $433.2 million.

  • Treasury bills

RBZ has issued a cumulative total of $406 million TBs since the beginning of the year with the bulk of the TBs pertaining to the RBZ debt takeover programme by government.

  • Call for clear, investor-specific indigenisation and investment regulations

Government should spell out sector-specific investment regulations and guidelines to improve clarity on the indigenisation and economic empowerment law.

  • Importation of coins

In order to ease the problems of lower denomination coins, the Reserve Bank shall be importing special coins of 1c, 5c, 10c, 20c, and 50c whose values would be at par with the US cents. Rand coins of 10c, 20c, 50c, R1, R2 and R5 are also being imported to buttress the multiple currency system which is dominated by United States dollars and Rands.

  • Interbank Market

The African Export Import Bank (Afreximbank) guaranteed interbank market facility (or Aftrades facility) of $100 million is earmarked to be operational between end of August and mid-September 2014.

  • Demonetisation

Government should demonetise the Z$ currency to restore confidence in the financial markets. Any plan to reintroduce local currency amounts to “economic suicide.”

  • Increased participation by Diasporans on the ZSE

All non-resident Zimbabweans shall be permitted to invest in any listed counter on the Zimbabwe Stock Exchange without any limit, i.e. up to 100 percent from 70 percent. More diaspora bonds to be introduced.

  • Removal of restrictions on the participation of foreign investors on the bond market
Removal of exchange control restrictions on foreign investors keen on bond market.
  • Removal of restrictions on capital remittances

With immediate effect, all disinvestment proceeds arising from both pre-May 1993 and post-May 1993 shall be fully remittable. In this regard, investors may remit offshore any capital plus appreciation to any destination of their choice, after exchange control approval has been granted.


  • Review of the external loans threshold

The threshold for approval of offshore loans by authorised dealers without need for prior Reserve Bank approval is hereby increased from the current $1 million to $7.5 million.

  • Cash export limits reviewed

The amount of cash individuals can take outside the country has been reduced from $10,000 per exit to $5,000 with immediate effect

  • Review of Nostro Account balances threshold

With immediate effect, the maximum nostro account compliance threshold shall be reviewed from the current 30 percent of FCA balances excluding domestic FCAs to a simplified threshold of five percent of total FCA balances. There will be no need to split banks’ deposits between domestic and non-domestic FCAs for the purpose of complying with this new threshold of five percent on the basis of going back to basics.

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