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RBZ Dismisses Claims of Foreign Currency Shortages, Urges Formalisation of Informal Businesses

RBZ Governor Urges Banks to Prioritize Lending Over Fees Amid Market Competition photo credit meta
Dr. John Mushayavanhu

The Reserve Bank of Zimbabwe (RBZ) has refuted claims of foreign currency shortages, stating that supply currently exceeds demand from businesses with valid foreign payment obligations.

RBZ Governor, Dr. John Mushayavanhu, emphasised that proceeds from export surrender requirements have been more than sufficient to cover market demand, contradicting periodic complaints from businesses regarding limited forex availability.

According to the RBZ, exporters are mandated to surrender 30% of their earnings to the central bank at the prevailing exchange rate.

This measure ensures that non-exporting firms can access foreign currency for essential imports while also providing exporters with local currency for operational expenses such as taxes and statutory obligations.

“Last Thursday, the central bank intervened in the market by offering US$20 million from export surrender proceeds.

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However, banks only purchased US$15 million, indicating that this was the actual demand required to clear pending invoices,” Dr. Mushayavanhu explained.

He assured that businesses with valid import invoices should have no difficulties accessing forex through their banks, as the availability of foreign exchange currently outweighs demand.

The RBZ channels export proceeds to provide liquidity in the market, complementing forex transactions conducted through the Willing Buyer, Willing Seller platform.

ALSO READ: Econet Announces US$0.73 Dividend for 2025 Financial Year

However, some businesses continue to report challenges in securing foreign currency.

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Meanwhile, Dr. Mushayavanhu encouraged informal businesses to formalise their operations to gain access to affordable financing options under government-supported credit facilities.

During a recent interview with ZTN Prime, he noted that eligibility for funding under the Targeted Finance Facility (TFF) hinges on having a registered bank account, which is a key component of formalisation.

He also advised the public against keeping large amounts of cash at home, citing an increase in robbery incidents. “Your money is safer in the bank,” he stated, adding that financial institutions offer interest on deposits, allowing individuals to earn returns.

Additionally, Dr. Mushayavanhu raised concerns over the circulation of counterfeit currency within the informal sector, a risk that formal banking institutions can help mitigate.

He acknowledged that Zimbabwe’s history of hyperinflation had eroded public confidence in savings, particularly after the financial losses suffered in 2008.

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However, with the government extending the multi-currency system until 2030 to ensure economic stability, he urged depositors to take advantage of secure banking services despite concerns over high transaction fees.

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