Zimbabwe tightens screws on miners’ export earnings in forex crunch

Platinum and chrome miners

The Reserve Bank of Zimbabwe has ordered platinum and chrome miners to surrender 80 percent of their export earnings to the central bank as the country struggles to contain a crippling dollar note shortage.

Previously miners in the southern African nation were required to retain 50 percent of their earnings.

Mining is the single largest earner of foreign currency in Zimbabwe, making up 62 percent of total exports in 2016.

“…with immediate effect, 80 percent of all foreign exchange receipts from Platinum Group Metals (PGM) and Chrome shall be transferred to the Reserve Bank Nostro Account on receipt,” a central bank directive dated Aug. 4 said.

The bank said the measure was to ensure effective administration of foreign exchange and spread liquidity in the foreign exchange market.

In exchange for the foreign currency the central bank will pay the exporter using real time gross settlement (RTGS), crediting the exporter’s account with local currency.

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