Cash importation, Foreign school fees moved to RBZ import Priority One

Reserve Bank of Zimbabwe

The expedition of cash imports will help liquefy the domestic market.

THE Reserve Bank of Zimbabwe has further revised the import priority list moving tuition fees and student living expenses and cash importation to the top list.

The expedition of cash imports will help liquefy the domestic market, according to the central bank.
The list which started off with six items has now grown to nine to include, cash importation, school fees and remittances of salaries for Zimbabwean diplomats stationed abroad.  Last week the Barclays Bank Zimbabwe managing director George Guvamatanga called for the inclusion of school fees on the list saying it was a basic right.

“In order to expedite importation of cash by the banks to liquefy the economy, such importations shall be considered under priority one (High) of the priority list for foreign payments guidelines,” RBZ director (foreign exchange) Moris Mpofu said in a circular to banks.

The priority list is meant to ensre fair and equitable distribution of foreign currency reserves to priority areas within the country. The list continues to be revised as the demands from the market are evaluated.

Meanwhile banks have called on the central bank to set up a central cash depot at the RBZ to reduce cash import costs. The banks have also recommended that technology infrastructure such as mobile telephone infrastructure, ATMs and POS machines are shared. According to the Bankers Association of Zimbabwe, the recommendations are still under consideration by the RBZ.

Banks have in the past called on Econet to open up its network for the provision of mobile banking services.

Giving their view to parliament earlier today, BAZ president Charity Jinya also called on the country to use the South African rand as the major transacting currency as this would reduce the concentration risk associated with heavy reliance on US$ transactions. Under the suggested structure the US$ would then be used to make offshore payments and local electronic payments only.

Jinya reiterated that BAZ supports the introduction of bond notes as it will limit externalisation of scarce foreign currency reserves and to incentivise exporters.

“The introduction of bond notes presents a solution to lift Zimbabwe out of deflation, which has undermined productivity, economic growth and development of the country and resulted in de-industrialisation and massive company closures.” FinX

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