Parly speaks on forex retention threshold

Source: Parly speaks on forex retention threshold | The Herald 11 NOV, 2019

Ishemunyoro Chingwere Business Reporter

The mining sector has been urged to balance its calls for an increase in foreign currency retention threshold with the country’s broader needs, Mines and Mining Development Parliamentary Portfolio Committee chairperson Cde Edmond Mkaratigwa has said.

Cde Mkaratigwa said this during the Chamber of Mines of Zimbabwe (CoMZ) 2019 State of the Zimbabwe Mining Industry Survey results launch in Harare on Friday.

The survey showed that miners are not happy with the current 55 percent foreign currency and 45 percent local currency payment method used to settle mineral exports.

Cde Mkaratigwa said while miners’ call for an upward review of the foreign currency threshold appears justified as most of their consumables were imported, there was need for them to consider the need to stabilise the interbank rate.

“The Minister of Finance (Professor Mthuli Ncube) has a challenge, while he wants to support the mining industry and grant the 85/15 ratio you want, he is also faced with a challenge of stabilising the exchange rate, it’s a moving target by the way,” he said.

“If we are not careful, it can actually seriously disrupt our objectives. To this end, I am calling upon this sector . . . to support the country’s other foreign currency needs in the event that the ratio is improved to your benefit.”