EMA demands payment in hard currency

IN a subtle admission that the surrogate currency, the bond notes has lost value against the US dollar, government arm Environmental Management Agency (EMA) is now demanding hard currency from all foreign-registered vehicles.

BY BLESSED MHLANGA

EMA said it will be collecting hard currency for all foreign-registered vehicles transiting through the Zimbabwe borders effective next month.

“Please be advised that with effect from Wednesday, August 1, 2018, all foreign registered trucks will be required to pay their transit fees in foreign currency. The foreign currency should either be US dollar or rand,” reads a statement placed at the country’s ports of entry.

Most foreign registered vehicles were using plastic money as a mode of payment, this has been suspended unless the money is coming from a “foreign currency account.”

“For those who would like to pay through swipe, they should have a foreign currency account and a foreign currency ATM card,” the statement read.

Zimbabwe does not have a local currency with all banks running US dollar and mostly rand accounts in a multi-currency system.

Local banks have, however, been failing to released US dollar owing to drying of nostro accounts owing to poor foreign currency earnings by the country.

Government has insisted that the bond note is at par with the US dollar but it has taken a serious knock and is not trading at close to 75% of its value on the black market forcing EMA to demand payment in hard currency.