World News

Zimbabwe’s currency reform could impact gold sale remittances

Zimbabwe president Emmerson Mnangagwa declared the RTGS dollar as the country’s only legal currency on Monday ending the decade-long use of multiple currencies including the US dollar and rand.

The president said it was an important move to repair the economy but many Zimbabweans are concerned about the future.

Zimbabwe’s central bank has assured authorised gold dealers that payment arrangements for large scale producers will still apply and the current retention thresholds will remain the same.

Zimbabwean gold producers keep 55% of their sales in foreign currency and the remaining 45% is surrendered to the central bank, half of which will now be sold on the interbank forex market.

Exporter will maintain their foreign currency accounts in order to make international payments but should they need to make a local payment, they will have to liquidate their forex at the interbank market rate.