Source: RBZ says diaspora remittances increase after export incentive | The Financial Gazette December 8, 2016
THE Reserve Bank of Zimbabwe says it has seen an increase in diaspora remittances following the introduction of five percent incentive.
In order to encourage remittances through formal channels, the RBZ introduced a Diaspora Remittances Incentives Scheme.
The scheme will benefit both the money transfer agents and the receiver of the funds on the basis of a 2%/3% split. This is to assist in reducing the cost of receiving and sending remittances.”
The mode of payment is such that the agent is expected to prefund the payout and the Reserve Bank pays the incentive on the basis of money received
Governor Dr John Mangudya said diaspora remittances had increased to $50 million from monthly average of $45 million. “We have seen an increase in remittances to around $50 million due to the incentive, although overall it all boils down to utilisation.”
The governor also sought to correct notions that the central bank is now allocating all the foreign currency in Zimbabwe as they were only retaining 50% of mineral exports and 50% of tobacco value addition. Manufacturing, Tourism, diaspora all retain 100% of their earnings bringing the average to 33% for RBZ while the remainder goes to the banks.
Meanwhile, the RBZ said it is releasing the second batch of $2 Bond Notes amounting to $7 million this week. This brings the total amount of Bond Notes disbursed to $17 million against a value of $70 million payable to exporters of goods and services under the Export Incentive Scheme. “This is in line with the strategy to release the Bond Notes on a measured or drip-feed basis.”
He reiterated the bond notes are supporting the multi-currency system and not replacing it. “We will continue to provide US dollars to the banks while the bond notes will supplement it. We are also preserving the value of nostros the bond notes.”
He said they would continue releasing small notes with the $5 note set for release in due course. FinX