TechZim

Aug. 8, 2020

A new Statutory Instrument (SI) was effected into law and  gives more detail regarding how the Victoria Falls Exchange (VFEX) will work Granted that VFEX has been pitched as an offshore capital centre by the Ministry of Finance, one of the questions that came up was which currency would be used. The US$ and other currencies which are not the ZW$:

Statutory Instrument 196 of 2020 (Exchange Control (Special Provisions for Securities Listed on Victoria Falls Stock Exchange) Regulations, 2020).

Roll out of the inaugural foreign exchange auction

The inaugural foreign exchange auction had a flying start with applications worth US$10.35 million being allotted from bids for US$11.4 million, with the weighted average, effectively the official exchange rate until next week’s auction, being $57.3582:US$1.

Bidders offered rates at this auction run by the Reserve Bank of Zimbabwe ranging from a low of $25.50, a whisker above the frozen and now defunct interbank rate prevailing until the auction, to a high of $100, a rate even above the black market rate, for US$1.

Gazzetting of SI 213 of 2019 to penalise traders charging in Forex for local transactions.

The government has reportedly gazetted a new Statutory Instrument that states that they can now penalise defaulters who either charge or pay in forex for a local transaction. This comes a few short months after Mthuli announced that the multi-currency system has been abolished and the ZW$ would be the sole legal tender on 24 June.

Enactment of 2 laws, the Finance (Number Two) Act and Appropriation (Supplementary) (2019) Act

President Mnangagwa assented to two laws, the Finance (Number Two) Act and the Appropriation (Supplementary) (2019) Act to give effect to proposals by Finance Minister Mthuli Ncube in th ae 2019 Mid-term Budget Review Statement early this month.The signing of the proposed legislation into law follows their passing recently by the National Assembly with the House of Assembly cutting short a brief recess just before Heroes’ and Defence Forces holidays to process the Acts, then at Bill stage.

Government roped in the Institute of Chartered Accountants in Zimbabwe (ICAZ) to help in revamping of the public sector’s financial management system

The Zimbabwe government has adopted the IPSAS implementation plan and targets to fully implement it by 2025 to enhance financial accountability in central government, urban and rural authorities.
 

Liberalisation of imports.

Companies and individuals seeking to import basic commodities following the lifting of the import ban will have to use free funds, freeing the central bank from having to raise funds for the imports.