CUSTOMER NOTICE

EXCHANGE CONTROL DIRECTIVE RZ56/2024

Reference is made to the Monetary Policy Statement (MPS) issued by the Governor of the Reserve Bank of Zimbabwe,
on 05 April 2024.

In order to facilitate the introduction of the structured currency and operationalize the foreign exchange policies
contained in the Statement, Exchange Control hereby issues this Exchange Control Directive to provide administrative
guidance and compliance parameters to Authorised Dealers.

Below are key measures to operationalise the policies:

POLICY MEASURE INTERPRETATION IMPLICATION

Discontinuation of the • Authorised Dealers are advised that the Foreign → Customers are advised that NMB Bank
Foreign Exchange Exchange Auction System (FEAS) that was last held will no longer accept nor process any
Auction System on 12 December 2023 has been officially Foreign Exchange Auction System
discontinued effective 8 April 2024. applications.

Treatment of • All auction allotments arrears that accumulated
Outstanding Auction from non-funding by the auction will be refunded
Allotments to recipients at the current inter-bank exchange
rate. To allow the new structured currency system
to start on a clean slate, the refund will entail
conversion of all outstanding auction allotments
into a 2-year ZiG denominated investment
instrument at an interest rate of 7.5% per annum.
→ Customers with any unpaid amounts
from auctions will be refunded in the
local currency (ZiG) at the current
exchange rate.
→ The refund will be converted into a 2-year
ZiG-denominated investment instrument
with an interest rate of 7.5% per year.
 CUSTOMER NOTICE
EXCHANGE CONTROL DIRECTIVE RZ56/2024

POLICY MEASURE INTERPRETATION IMPLICATION

The Reserve Bank Financial Markets Division will
communicate with banks on the respective
implementation framework.

• For Exchange Control purposes, the conversion of

foreign exchange auction allotment arrears to ZiG
denominated investment instruments expunges
the foreign exchange obligation and liability from
the Reserve Bank. Similarly, the conversion also
gives the beneficiary the benefit of value
preservation in holding the investment instrument.

Treatment of • All outstanding payments for foreign exchange → Payments for foreign exchange made by
Outstanding purchased by Treasury under the 25% surrender the Treasury (RBZ) will be converted into
Payments on requirement will be converted, using the prevailing a ZiG-denominated investment
Surrender US$/ZiG exchange rate, into a ZiG-denominated instrument with a one-year term and an
Obligations investment instrument with a tenor of one (1) year interest rate of 7.5% per year.
at an interest rate of 7.5% per annum. The Reserve
Bank Financial Markets Division will communicate
with banks on the respective implementation
framework.
 CUSTOMER NOTICE
EXCHANGE CONTROL DIRECTIVE RZ56/2024

POLICY MEASURE INTERPRETATION IMPLICATION

Adoption of a • Following the discontinuation of the Foreign
Market-Determined Exchange Auction System (FEAS), Authorised
Exchange Rate Dealers are advised that the Reserve Bank has
System adopted a market determined exchange rate
system under the Willing-Buyer-Willing-Seller
(WBWS) trading arrangement.
• Under the Willing-Buyer-Willing-Seller trading
arrangement, Authorised Dealers (banks) and
Bureaux de Change shall purchase foreign
currency from willing sellers at a market
determined exchange rate for onward sale to
willing buyers{importers). Purchase of foreign
currency by importers under this foreign exchange
trading arrangement shall strictly be to fund
bonafide external obligations.
→ Customers to take note that the Reserve
Bank has adopted a market-based
exchange rate system called the Willing-
Buyer-Willing-Seller (WBWS) trading
arrangement.
→ Banks and Bureaux de Change will buy
foreign currency from willing sellers at
market exchange rates and sell it to
importers.
→ The foreign currency should be used for
legitimate external obligations.

• In administering this foreign exchange trading

arrangement, Authorised Dealers are reminded to
serve customers on a first come-first served basis
and desist from matchmaking of buyers and
sellers of foreign currency.
 CUSTOMER NOTICE
EXCHANGE CONTROL DIRECTIVE RZ56/2024

POLICY MEASURE INTERPRETATION IMPLICATION

Standardised • Authorised Dealers are advised that foreign → The standard foreign currency retention
Foreign Currency currency retention thresholds remain standardised threshold for all sectors is 75%, except for
Retention Thresholds at 75% across all sectors, except for small-scale small-scale gold producers who can
gold producers who shall continue to retain 100% of retain 100% of their gold sale proceeds.
their gold sale proceeds.
Threshold for the • Authorised Dealers are required to facilitate the → NMB Bank Limited shall assist non-
Export of Domestic opening of Non-Resident Transitory Accounts resident investors in opening accounts
Currency denominated in ZiG to facilitate trading of shares denominated in ZiG for trading on the
Facilitation of on Zimbabwe Stock Exchange by non-resident Zimbabwe Stock Exchange and in
Trading on the investors. foreign currency for trading on the
Zimbabwe Stock Victoria Falls Stock Exchange.
• In the same vein, Authorised Dealers are also
Exchange and
required to facilitate the opening of Non-Resident
Victoria Falls Stock
Transitory Accounts denominated in foreign
Exchange by Non-
currency to facilitate trading of shares on the
Residents
Victoria Falls Stock Exchange by non-resident
investors.
Threshold for the • Authorised Dealers are advised that the threshold → Customers are advised that the limit for
Export of Domestic for the export of domestic currency (ZiG) remains exporting domestic currency (ZiG)
Currency at the equivalent of US$1,000. The relevant remains at the equivalent of US$1,000.
Statutory Instrument shall be promulgated in due
course.