RBZ to market platinum, chrome

Published: 03 August 2017

THE Reserve Bank of Zimbabwe (RBZ) will, with immediate effect take control of the marketing of platinum and chrome, in a move it says will improve transparency and efficient utilisation of foreign currency.

Platinum is one of Zimbabwe's major exports and racked up $333,5 million in the five months to May this year, up from $282 million in the same period last year.

Chrome ore and high carbon ferrochrome exports also increased from $14,7 million to $104,4 million in the period to May 2017.

The chrome sector was supported by the export incentives, lifting of a chrome ore export ban and general increase in international prices for chrome related products.

"In order to ensure that the nostro stabilisation facility is supported by a continuous stream of export receipts, and by so doing, improve the efficient utilisation of foreign exchange and bring equity in the foreign exchange market, foreign exchange receipts from platinum and chrome shall be treated in the same manner as gold, diamonds, tobacco and cotton," central bank governor John Mangudya announced as he presented his Mid-Term Monetary Policy Statement yesterday.

He indicated that the new policy measure was consistent with practices in other countries, citing Angola and Nigeria, where fuel foreign exchange receipts are managed by the central banks.

In Botswana and Zambia, diamonds and copper, respectively, are managed by the central banks, Mangudya said.

In Zimbabwe, the central bank is the sole buyer of gold in the country and is also strongly involved in the marketing of tobacco and cotton.

The country is currently experiencing acute foreign currency shortages due to a huge trade deficit, illicit financial inflows and low foreign direct investment among other things.
- fingaz