The RBZ Forex Priority List

In an article on the 13th of April 2018, the Zimbabwe Independent reported the Confederation of Zimbabwe Industries stating that Zimbabwe was facing a foreign currency backlog of US$600 million from September 2017 to March 2018. The system  does not appear to have improved much with many businesses continuously bemoaning foreign currency shortages. These shortages are mainly a result of Zimbabwe realising little from exports due to a frail economy, getting negligible inflows of foreign direct and portfolio investment and has limited access to affordable lines of credit. Consequently, many companies are struggling to secure hard currency for critical imports such as spares, raw materials and equipment. In a bid to manage the situation, the Reserve Bank of Zimbabwe has set up a foreign currency priority list framework. This is used to allocate forex on the basis of the most deserving purpose to importers. To further improve the situation, the Reserve Bank is also offering guarantees for disbursement in forex for those companies and investors participating in import substitution sectors. For a further discussion on the financial regulatory regime ins Zimbabwe and any further assistance, please contact Tawanda Andrew Chiurayi email tac@cwg.co.zw