By Business Reporter
GOLD jewellers will now enjoy 100 percent proceeds from jewellery exports following announcement by Reserve Bank of Zimbabwe (RBZ) governor Dr. John Mangudya.
This means jewellers can now retain all foreign currency generated from their operations when using gold to produce their wares for both the domestic and international market.
The previous policy enabled jewellers to purchases gold from Fidelity Printers and Refineries (FPR) using Real Time Gross Settlement (RTGS) funds in which they retained 35 percent of the gross export value for own use.
The 65% balance was then transferred to the Reserve Bank nostro account to cater for national requirements.
In his presentation during the mid-term monetary policy review statement, Mangudya announced that jewellers were with immediate effect, required to buy gold from FPR using hard currency.
This comes at a time when government is pushing for mineral beneficiation, key to promoting value addition to generate more exports and foreign currency.
“In order to mitigate against arbitrage opportunities or abuse of this facility, with immediate effect, all purchases of gold by jewellers from FPR shall be in foreign currency and that jewellers shall retain 100% of their export proceeds.”
At present, FPR is paying for gold delivered by small scale miners 70 percent in foreign currency, with the 30 percent being paid in either bond notes or bank transfer.
While all exporters are entitled to retain 100 percent of their export earnings, it is a different story for gold, platinum, diamonds, chrome and tobacco producers who are left with no option but to share the spoils of their output earnings with government, to close the gap on national foreign currency deficiencies.
“It is also essential to note that all exporters retain 100% of their export proceeds with the exception of gold producers that retain 30% of export proceeds; platinum, diamonds and chrome 35% and; 20% for tobacco and cotton producers,” said Mangudya. ENDS//