US dollar for tobacco, cotton farmers

Published: 07 December 2018
Tobacco and cotton growers will be paid 20 percent of their produce in foreign currency in the next marketing season while the Government will retain the remainder to help meet imports of essential commodities, according to Reserve Bank of Zimbabwe Governor John Mangudya.

This follows intense lobbying by players in the billion dollar industry, who demanded to be paid in hard currency to cushion them from distortions resulting from multi-tier exchange system.

While the authorities have maintained that the quasi bond note currency and the Real Time Gross Settlement balances will remain rated at 1:1 with the United State dollar, the farmers argued that the multi-tier exchange system was a reflection that the greenback is not at par with the RTGS balances and the bond note.

Tobacco farmers had warned failure by the Government to pay them in foreign currency would hurt production of Zimbabwe's single largest foreign currency earner.
- Business Weekly
Tags: Tobacco,


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