Andrew
Online Reporter
EXPORTERS who earned less than US$1 million last year will require Exchange Control approval to use the surrender portion of their export proceeds payable in local currency to buy gold coins, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya has said.
According to RBZ, the gold coins’ price will be based on the London Bullion Market Association (LBMA) precious metal fix from the previous day, with an additional 5 percent to cover production and distribution costs.
The precious metals fix is a price indicator that is set and published on days when the precious metals market is actively trading.
Said Dr Mangudya: “Exporting entities shall buy Mosi-oa-Tunya gold coins in foreign currency from their retained export portions.
“Notwithstanding this requirement, exporters whose annual export receipts in 2021 were less than US$1 million shall require a specific Exchange Control approval to be permitted to utilise a portion of their surrender portion that is payable in local currency to purchase the gold coins.”
Gold coins will be purchased in a number of currencies, including the Australian dollar, Botswana pula, British pound, South African rand and euro.
Local buyers including individuals may buy in local currency or foreign currency.
Corporates, including institutional investors, will also be allowed to buy gold coins in local currency or foreign currency, but will be subject to quantity restrictions where it is deemed necessary.
Gold coins are being introduced into the market as part of measures to provide investors and the general public with alternative means to preserve value and hedge against inflation.
Online Reporter