Govt legalises forex use

Harare(New Ziana)-The government said on Sunday it had legalised, with immediate effect, use of foreign currency in local trading by people with free funds.

Use of foreign currency in local trading was outlawed last year as part of a raft of monetary reforms.

But the government said the policy review was meant to facilitate trade, especially of critical medicines, in the wake of the Covid-19 outbreak.

The government proclamation, via a statutory instrument gazetted on Sunday, follows an earlier announcement on the same subject by the central bank.

But the move only relates to people with free funds, and the local Zimbabwe dollar will remain in predominant use in local trading.

“Notwithstanding these regulations, any person may pay for goods and services chargeable in Zimbabwe dollars, in foreign currency suing his or her free funds at the ruling rate on the date of payment.

“The payment envisaged in subsection (2) may be done electronically through a foreign currency account or cash or through any electronic payment platform,” said government.

RBZ defines free funds as foreign currency receipts by individuals (through remittances), international organisations, Nongovernmental organisations and embassies.

New Ziana