Vusumuzi Dube
Sunday News Correspondent
In a bold move to tackle Zimbabwe’s economic challenges, the Reserve Bank of Zimbabwe (RBZ) has slashed the foreign currency outflow limit from US$10,000 to US$2,000 per individual.
This significant policy shift, announced by RBZ Governor Dr John Mushayavanhu, aims to rationalize hard currency outflow, stabilize exchange rates, and curb inflation.
The new regulations, published under Section 40 of the Exchange Control Regulations, have garnered support from Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube.
As part of the central bank’s broader monetary policy strategy, this decision is expected to:
– Rationalize Foreign Currency Outflow: Reduce the amount of hard currency leaving the country
– Stabilize Exchange Rates: Maintain a stable exchange rate between the Zimbabwean currency and foreign currencies
– Combat Inflation: Mitigate the impact of inflation on the economy
The RBZ has been working to improve foreign currency receipts, which increased by 23% in January and February 2024 compared to the same period in 2023, totaling US$2.2 billion. This move is a key step in maintaining economic stability.
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