Zimbabwe central bank lets exporters hold dollars beyond 60 days
The Reserve Bank of Zimbabwe tower, centre, in Harare, Zimbabwe. Photographer: Waldo Swiegers/Bloomberg
HARARE (Reuters) – Zimbabwe’s central bank on Friday reversed a decision to force exporters, including mining companies, to sell a large portion of their dollar earnings if they were not used after 60 days.
Critics blame the crisis on financial mismanagement and corruption by the government of President Emmerson Mnangagwa. It says the economic troubles are caused by droughts as well as sanctions imposed by Western countries some two decades ago.
Reserve Bank of Zimbabwe governor John Mangudya said the bank’s monetary policy committee had agreed “to remove the compulsory requirement to liquidate all unutilised export proceedings after 60 days, with immediate effect”.
Mining companies, which generate the most foreign currency, have been lobbying the government to let them keep their dollars, saying this would encourage more investment.
The Chamber of Mines, which represents the biggest mining companies, did not immediately respond to requests for comment.