Pindula
Register Login

Full Text: Measures Being Instituted By Government To Enhance The Zimbabwe Dollar

Full Text: Measures Being Instituted By Government To Enhance The Zimbabwe Dollar

Zimbabwe’s Finance and Economic Development Minister, Professor Mthuli Ncube has issued an advisory note on measures being instituted by the government to enhance the domestic use of the Zimbabwe dollar. Pindula News presents the advisory:

PUBLIC ADVISORY NOTE ON MEASURES BEING INSTITUTED BY GOVERNMENT TO ENHANCE THE DOMESTIC USE OF THE ZIMBABWE DOLLAR

BACKGROUND

1. Government, through various agencies is presently seized with instituting various measures to enhance the formal use of the domestic currency.

2. These measures are also aimed at stemming illegal trade in foreign currency and its associated twin; that of parallel market benchmarking or indexation of prices of goods and services at parallel market exchange rates.

3. The continuation of these practices, which have been identified as significant contributors to price instability in the economy and are imposing downside risks to macro-economic stability, and the erosion of domestic and international competitiveness.

4. Over the past 40 months, the government has instituted numerous initiatives to bring macro-economic stability. These include fiscal consolidation which has resulted in balanced budget performance and the elimination of destabilising fiscal deficits despite major economic shocks such as the 2019-20 droughts, cyclone Idai and the ongoing threat of the Covid-19 pandemic.

5. Furthermore, the restoration of domestic and export competiveness through the re-introduction of the Zimbabwe dollar, has seen rapid gains being made in stabilising the current account, which has also been boosted by increased international remittances, enhanced export performance and notable import substitution effects.

6. Consistent implementation of the monetary targeting framework by the Reserve Bank of Zimbabwe as well as close policy coordination between fiscal and monetary authorities have been key policy milestones towards achieving price stability.

7. These developments have also seen the rapid growth of privately held foreign currency reserves from levels of around US$300million in 2018, to over US$2 billion currently held in Zimbabwean banks. Official reserves have also increased from less than US$100million to over US$1.2 billion currently, which includes, the US$960 million equivalent in SDRs recently availed by the IMF to Zimbabwe.

8. In the intervening period, government has also improved access to foreign currency by all bona fide businesses and individuals through the auction system.

9. Whilst the foreign currency auction system has provided a platform for the continuous and sustainable use of local currency by individuals and corporations it is now imperative to expand the areas which the Zimbabwe Dollar should be used in the economy and further provide incentives for its use.

10.In this regard, the public is advised that the following measures now apply with immediate effect:

a. All mining royalties are now payable in Zimbabwe Dollars up to a limit of 50% of royalties due.

b. All duties and taxes on the importation of designated motor vehicles are now payable in Zimbabwe dollars again up to a limit of 50% of duties and taxes payable.

c. All domestic taxes due from exporters on their export receipts are now payable in both foreign and local currency in direct proportion to the approved export retention levels. As an example, an exporter who receives foreign currency of say USD1000.00 at a 40% surrender ratio (60% retention) will pay taxes on the 40% in Zimbabwe dollars and the 60% in foreign currency. These measures reflect Government’s commitment to promote the wider use of the Zimbabwe Dollar and to continuously strengthen the economy so as to build long-lasting macro-economic stability.

This advisory note issued in the public interest.

PROF. MTHULI NCUBE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT 04 FEBRUARY 2022

More: Pindula News


Share Article

Sponsored

More

7 Comments

Undertaker 3 months ago

Yeah the time has come for us the Money cchangers,Mobile money Agents and the streets hustlers to revenge our monies that were blocked during that time.Only our Votes is the only solution
#bhoramusango
Focus on CCC
ZANU Rest in Peace


Coming soon 3 months ago

Zim circus can we have jumbo the elephant 🤡🤡🤡🥳🥳🙉🦁🐻🦓🐘🐘🦍🐒🐿️🎠🎪🎪🎪🎡 welcome to zimbabwe have fun I can't help it but laugh a minister says we will never do this this month the very person 3months down the road does the very thing he vowed never to do 🤔🤔🤔🤔🤔we have a problem ipapo almost every Zimbo is educated so gud luck minister I hope you win with these Zimbos 😜


Shaman 3 months ago

Stiching the anus trying to avoid diarrhoea......poor Zim


dóc 3 months ago

fokofu wena swine


Z💛D💛CK CHIKAP💛NYA 🇿🇼🇿🇼🇿🇼 3 months ago

Chamisa inenge mvura ya Mwari inonayira wese anomuda ne asingamudi, akarima ne asina, mutadzi ne mutsvene.

Kusada kwako Chamisa hakumutadzise kukumiririra kuti ukwanise kuwana kurarama kwakakukodzera.

Arikuita zvose nesimba rake kuti ramangwana rako neni rive rakajeka, ramangwana revana vako rivewo rakajeka zvekare.

Kumuda kana kusamuda Chamisa hakusi kuzomutadzisa kuunza budiriro munyika ye Zimbabwe.

Whether urimu MDC, mu Zanu or whoever you are, you are always going to enjoy the fruits of prosperity that are banked within our Party (CCC). Kuzvida or kusazvida CCC 🌀 is the wave of change for the best...

Chamisa My President,
Chamisa Your President,
Chamisa Our President.☝️💛☝️

CCC My Party,
CCC Your Party,
CCC Our Party. ☝️💛☝️

We are a united party
We are a united front
We are united Citizens.☝️💛☝️

Saka 2023 Ngaapinde Hake Mukomana.


Cobra King. 3 months ago

You will fail. You will be expelled and you will be history Nduli Ndube



Leave a comment


Recent News


News Categories



Give us a Feedback