Annual Report on Exchange Arrangements and Exchange Restrictions 2005
Chapter

ZIMBABWE

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
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(Position as of July 31, 2005)

Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: February 5, 1995.
Exchange Arrangement
CurrencyThe currency of Zimbabwe is the Zimbabwe dollar.
Exchange rate structure
MultipleYes.
Classification
Managed floating with no predetermined path for the exchange rateOn January 12, 2004, the rate of Z$55 per US$1 was eliminated; foreign exchange transactions of the government and NOCZIM—the national oil company—previously conducted at that rate are effected at the Z$824 per US$1 rate. Previously, the exchange rate of the Zimbabwe dollar was pegged de facto to the U.S. dollar at the rate of Z$55 per US$1 and this rate applied to official and some private transactions. Also effective January 12, 2004, all other transactions are effected through a tender system, which operates three times a week. Transactions under these two rates are effected through a carrot and stick retention based export incentive scheme (Exchange Control Directive RE 511, December 24, 2003) operated by the Reserve Bank of Zimbabwe (RBZ). Under the tender system, ADs submit detailed bids on behalf of their customers. An RBZ committee then examines the bids and eliminates those that are for nonpriority purposes. Successful bidders are allocated foreign exchange on the basis of their bids and pay the amount bid. The tender rate is calculated as the weighted average of the prices offered to the successful bidders. As a result of these developments, the exchange arrangement of Zimbabwe was reclassified, effective January 31, 2004, to the category managed floating with no predetermined path for the exchange rate from the category conventional pegged arrangement.
Effective November 1, 2004, an enhanced carrot-and-stick framework for horticulture was introduced since this sector has a shorter export marketing cycle compared to other goods. Only banks are licensed to deal in foreign exchange with the public. Effective July 21, 2005, a floor exchange rate of Z$17,500 per US$1 is applied for inward remittances. Previously, this rate was set at Z$6,200 per US$1 on November 1, 2004 and Z$9,000 per US$1 on May 19, 2005. Effective July 21, 2005, the exchange rate of Z$17,500 per US$1 is applied at the tobacco auction floor. Previously, on January 17, 2004, the RBZ purchased 75% of foreign exchange receipts from the tobacco auction at the tender rate at Z$824 per US$1. Effective February 1, 2005, tobacco producers are treated as direct exporters for purposes of exchange rate administration and access to foreign exchange.
Exchange taxNo.
Exchange subsidyThe following export subsidies apply: (1) Z$5,000 a kilogram of cotton and (2) Z$5,000 a gram of gold. The government does not purchase foreign exchange at the rate of Z$824 per US$1.
Forward exchange marketNo.
Arrangements for Payments and Receipts
Prescription of currency requirementsAll payments by nonresidents to residents must be effected in any of the 17 currencies freely convertible through ADs, with the exception of payments otherwise specified or effected through nonresident accounts.
Controls on the use of domestic currency
For current transactions and paymentsResidents may convert domestic currency only to meet approved current account payments.
For capital transactions
Transactions in capital and money market instrumentsRBZ approval is required for residents to convert domestic currency in order to make capital payments.
Transactions in derivatives and other instrumentsYes.
Credit operationsYes.
Use of foreign exchange among residentsResidents are not allowed to transact in foreign exchange.
Payments arrangements
Bilateral payments arrangements
OperativeThere are arrangements with Botswana, Libya, Malawi, Malaysia, Namibia, and South Africa.
Regional arrangementsZimbabwe is a member of RIFF.
Clearing agreementsZimbabwe is a member of the COMESA clearinghouse.
Administration of controlExchange control is administered by the RBZ under powers delegated to it by the Ministry of Finance and Economic Development (MOFED).
International security restrictionsNo.
Payments arrears
OfficialYes.
PrivateYes.
Controls on trade in gold (coins and/or bullion)
Controls on domestic ownership and/or tradeNo person, either as principal or agent, may deal in or possess gold unless that person is (1) the holder of a license or permit; (2) the holder or distributor of a registered mining location from which gold is being produced; or (3) the employee or agent of any of the persons mentioned in (1) and (2) above and authorized by an employer or principal to deal in or possess gold that is already in the lawful possession of the employer or principal. A mining commissioner may issue to any person a permit authorizing the acquisition, possession, or disposal of any gold, provided the quantity does not exceed one troy ounce. In all other cases, permission may be issued by the Secretary for Mines only.
Under the terms of the Gold Trade Act, three types of licenses may be issued: a gold dealing license, a gold recovery works license, and a gold assaying license. All gold obtained from a registered mining location must be lodged with the holder of its gold dealing license no later than the tenth day of every month unless specific permission has been granted by the mining commissioner or the appropriate minister. Any person intending to smelt gold or any article containing gold must first obtain a license issued by a district commissioner under the terms of the Secondhand Goods Act, which authorizes the possession of smelting equipment.
Controls on external tradeThe exportation of gold in unmanufactured form is controlled and licensed by the Ministry of Mines; these controls do not apply to the RBZ. No export licenses for gold are issued.
The importation of gold is controlled by the Gold Trade Act, which requires those intending to import gold into Zimbabwe to meet certain requirements.
Controls on exports and imports of banknotes
On exports
Domestic currencyResident travelers may take out up to Z$300,000.
Foreign currencyResidents may take out up to the equivalent of US$1,000 a day for business travel and up to US$2,500 a year for holiday travel. Nonresident travelers may take out the traveler’s checks they brought in, less the amount they sold to ADs. Upon departure, nonresident travelers may reconvert unspent Zimbabwean currency into foreign currencies on presentation of exchange certificates.
On imports
Domestic currencyNonresident travelers may bring in up to Z$50,000.
Foreign currencyForeign currency and traveler’s checks may be imported without restriction but may be sold or exchanged through ADs only.
Resident Accounts
Foreign exchange accounts permittedResident individuals may open foreign currency accounts (FCAs) in one of the denominated currencies in local branches of ADs.
Funds withdrawn from FCAs and converted into local currency may not be redeposited in the account, except in the case of the amount of the initial investment and income or capital gains from investments in listed companies on the stock exchange or money market accounts. Gold producers and tobacco farmers may maintain FCAs, which are credited with, effective December 31, 2004, 40% (previously, 20%) of their export receipts in foreign currencies and which they may use to purchase imports. Gold producers sell 60% of their output at a fixed support price—effective July 21, 2005, Z$230,000 a gram—and sell the remaining 40% on the international market. The proceeds from the latter are deposited in the producers’ FCAs, which are subject to the same retention periods as such accounts of other exporters.
Effective July 21, 2005, the liquidation of FCA takes place at the rate of Z$17,500 per US$1.
Held domesticallyYes.
Held abroadYes.
Approval requiredYes.
Accounts in domestic currency held abroadNo.
Accounts in domestic currency convertible into foreign currencyA resident may convert funds in a domestic account into foreign currency only when effecting approved current transactions.
Nonresident Accounts
Foreign exchange accounts permittedThese accounts may be credited with foreign currencies, with payments from other nonresident accounts, or with payments by residents that would be eligible for transfer outside Zimbabwe. Nonresident accounts may be debited for payments to residents, for payments to other nonresident accounts, or for payments abroad. Nonresident individuals may open foreign currency accounts in one of the denominated currencies in local branches of ADs. Funds in these accounts are traded at market-determined exchange rates. Funds withdrawn from these accounts and converted into local currency, however, may not be redeposited in the account, except in the case of the initial investment, and income or capital gains from investments in the stock exchange.
Effective July 21, 2005, the liquidation of FCA takes place at the rate of Z$17,500 per US$1.
Approval requiredYes.
Domestic currency accounts
Convertible into foreign currencyNonresidents may convert domestic currency accounts into foreign currency only when emigrating and taking out their surplus earnings.
Approval requiredYes.
Blocked accountsFormer residents residing outside Zimbabwe may maintain emigrants’ accounts in Zimbabwe. Cash assets held in Zimbabwe in the names of emigrants must be blocked in these accounts, and all payments to and from these accounts are subject to various exchange restrictions.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for imports
Advance payment requirementsAdvance payments for imports of up to the equivalent of US$100,000 are allowed.
Documentation requirements for release of foreign exchange for importsADs may approve applications to effect payments for authorized imports, provided the necessary documentation is submitted to and approved by the RBZ. Payments for imports may not be made in domestic currency through a local nonresident account. Imports of finished goods and raw materials for processing must be effected within 14 and 30 days after payment, respectively (previously, 90 days). Approval is required for longer periods.
Domiciliation requirementsYes.
Import licenses and other nontariff measures
Positive listThere is a priority list for foreign currency payments for which foreign exchange may be provided in the official market.
Negative listThe negative list for imports includes, in addition to items restricted for health or security reasons, nonmonetary gold, pearls, precious and semiprecious stones, and some jewelry items.
Open general licensesYes.
Licenses with quotasNo quotas are in force, but seasonal restrictions are applied to certain agricultural products.
Other nontariff measuresImports of certain goods (mostly agricultural and processed food products) require a special permit issued by the Ministry of Lands and Agriculture.
Import taxes and/or tariffsThe customs duty regime consists mainly of ad valorem duties, which range up to a maximum of 70% for luxuries, with a surtax of 10% on finished goods and specific duties on a number of products. Generally, imports are subject to an additional tax (between 12.5% and 20%) equivalent to the sales tax imposed on goods sold domestically. Government imports and capital goods for statutory bodies are exempt from customs duties.
The maximum tariff rate is 100% and applies to 18 tariff items. Effective February 28, 2004, customs duty valuation is based on the tender rate.
State import monopolyMaize may be imported only by the Grain Marketing Board or by others with the permission of the Board. Petroleum is imported by the National Oil Company, as well as by private companies under a license issued by the Ministry of Energy.
Exports and Export Proceeds
Repatriation requirementsYes.
Surrender requirementsEffective July 21, 2005, if surrender takes place within 30 days, exporters may retain 50% (previously, 75%) in an account at the RBZ and must surrender the remaining 50% at the support rate of Z$17,500 per US$1 (previously, 25% at the tender rate). If surrender takes place within 31–60 days, exporters may retain 45% (previously, 25%) and must surrender 55% at the support rate (previously, 75% at the tender rate). If surrender takes place within 61–90 days, exporters may retain 40% (previously, 60%) and must surrender 60% at the support rate (previously, 40% at the tender rate). Beyond 90 days, exporters may retain 15% in an account with the RBZ; previously, 15% was to be surrendered at the Z$824 per US$1 rate if surrender took place within 100 days and 20% if receipts were surrendered beyond this date. Foreign currency retention is stricter for horticulture. Also, effective July 21, 2005, a retention rate of 80% for incremental export proceeds applies during August 2005 to December 2006, to be reduced to 60% for 2007. Effective January 19, 2004, corporate FCA holders (including individuals, embassies, international organizations, nonresident controlled companies, and export-processing zone companies that are wholly financed from abroad) may use retained foreign exchange earnings for up to 21 days (previously, 30 days) for purposes specified on a priority list; foreign exchange not used after this period must be sold at Z$17,500 per US$1. Previously, the RBZ bought the foreign exchange from exporters and sold the proceeds to ADs to finance market requirements.
Sixty percent of export receipts for gold are paid by the RBZ to gold producers in convertible currency, which they may place in FCAs. Effective July 21, 2005, the price of gold was raised to Z$230,000 a gram.
Financing requirementsA waiver of the surrender requirement is granted to exporters and is applicable to the incremental portion of their export, calculated on a quarterly basis. Goods may not be exported without permission unless the customs authorities are satisfied that payment has been received in an approved manner or will be received within three months of the date of shipment (or a longer period if permitted by the RBZ).
Payments for exports must be received in foreign currency transferred into Zimbabwe through the banking system, except when there are special arrangements.
Documentation requirements
Letters of creditYes.
DomiciliationYes.
Export licenses
Without quotasExport licenses are required for the following: (1) any ore, concentrate, or other manufactured product of chrome, copper, lithium, nickel, tin, or tungsten; (2) petroleum products; (3) jute and hessian bags; (4) road or rail tankers for carrying liquids or semiliquids; (5) bitumen, asphalt, and tar; (6) wild animals and wild animal products; (7) certain wood products; (8) ammonium nitrate; and (9) armaments. Export-licensing requirements are imposed for reasons of health and social welfare, as well as to ensure an adequate domestic supply of essential products. Export permits are required from the Ministry of Lands and Agriculture for some basic agricultural commodities, including maize, oilseeds, cheese, milk, seeds, potatoes, citrus fruits, apples, bananas, and tomatoes.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersForeign exchange to pay for invisibles related to imports and, within certain limits, for other purposes is provided by commercial banks under delegated authority; prior approval of the RBZ is required. Applications for foreign exchange exceeding the limits established for commercial banks are approved by the RBZ, which deals with each case on its merits.
Trade-related payments
Prior approvalRequired for payment of commissions.
Quantitative limitsThe limits for freight and insurance are 30% of f.o.b. value of goods transported, but for goods that are of exceptional volume in relation to value, up to 80% of the f.o.b. value may be approved. For commission, the following limits apply: (1) confirming commission—up to 2.5% of c.i.f. value; (2) buying commission—up to 5% of f.o.b. value; (3) foreign travel agents—up to 10% of sales; and (4) selling commission—up to 7.5% of f.o.b. value.
Indicative limits/bona fide testYes.
Investment-related payments
Prior approvalAll investment-related transfers are subject to prior RBZ approval. Specific applications are submitted to ADs for approval without reference to the RBZ.
Quantitative limitsA corporation may be authorized to remit by way of dividends to foreign shareholders, including dividends due to former residents of Zimbabwe, up to 100% of the corporation’s net after-tax profits, provided that an application for the remittance of a dividend is submitted to an AD within 12 months from the end of the financial year in respect of which the dividend is payable.
Indicative limits/bona fide testYes.
Payments for travel
Prior approvalYes.
Quantitative limitsThe basic foreign exchange allowance for nonbusiness travel is the equivalent of US$2,500 a person a year regardless of age, and that for business travel is the equivalent of US$1,000 a day. In practice, owing to the foreign exchange shortage, foreign exchange is not readily made available for foreign travel.
Indicative limits/bona fide testYes.
Personal paymentsRemittance of pensions of former residents is guaranteed under the constitution.
Prior approvalWith RBZ approval, foreign exchange is provided for education abroad beyond the secondary school level for certain diploma and degree courses.
Quantitative limitsFor medical treatment, the limit is the equivalent of US$20,000 a trip for the patient and one companion. A travel allowance up to the equivalent of US$250 a person a day may be allowed. For studies abroad, the limit is the equivalent of US$50,000 a year, and the annual limit is the equivalent of US$2,000 for alimony and child support payments.
Indicative limits/bona fide testApplications for additional amounts must be submitted to the RBZ for approval.
Foreign workers’ wagesExpatriate workers may remit their monthly salaries, subject to RBZ approval.
Prior approvalYes.
Quantitative limitsAmounts of up to one-third of gross salary may be remitted.
Indicative limits/bona fide testYes.
Credit card use abroad
Prior approvalYes.
Quantitative limitsCredit cards may be used abroad for holiday travel, up to the equivalent of US$2,500, and for business travel, up to the limits set for those transactions.
Indicative limits/bona fide testYes.
Other payments
Prior approvalYes.
Quantitative limitsThe annual limit for subscriptions for a company is the equivalent of US$20,000.
Indicative limits/bona fide testYes.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsYes.
Surrender requirementsReceipts from invisibles must be repatriated through the banking system and sold to authorized banks within 30 days after being credited to an FCA. The surrender requirement governing export proceeds also applies to all invisible transactions.
Effective July 21, 2005, receipts from tourists and sales by international organizations, embassies, and individuals are surrendered to the RBZ at Z$17,500 per US$1 (previously, on January 1, 2004, at the tender rate).
Effective January 19, 2004, foreign exchange receipts from trade finance facilities and other capital inflows are to be surrendered to the RBZ at the tender rate.
Restrictions on use of fundsThe use of these funds is limited to a specified priority list.
Capital Transactions
Controls on capital transactionsInward transfers of capital through normal banking channels are not restricted. Outward transfers of capital are controlled.
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Purchase locally by nonresidentsForeign investors are permitted to participate in the Zimbabwe Stock Exchange (ZSE) using currency received in Zimbabwe through normal banking channels. The initial investment plus any capital gains and dividend income may be remitted without restriction. Foreign investors may also subscribe for up to 35% of primary issues of bonds and stocks. Nonresidents are not permitted to purchase bonds and stocks on the secondary market.
Sale or issue locally by nonresidentsNonresident investors are allowed to sell their bonds and stocks in the secondary market.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsYes.
Bonds or other debt securitiesControls apply to all these transactions.
On money market instrumentsControls apply to all these transactions.
Purchase locally by nonresidentsFormer residents holding blocked assets and new emigrants are allowed to invest their funds in government external bonds with a maturity of 12 years and an annual interest rate of 4%.
For investments prior to May 1993, under current legislation, disinvestment proceeds on the original amount of the investment qualify for remittances, but any capital appreciation that arises from revaluation of the investment goes to “blocked funds,” which are then converted into six-year bonds at a 4% interest rate and a variable ratio of remittances allowed, depending on the discount offered. However, if the amount of capital appreciation is small, it may usually be repatriated without restriction. All unremitted pension funds and any future pension remittances may be credited to an interest-earning block account. These funds may be invested in money market instruments and remitted freely. For investments made after May 1, 1993, current legislation dictates that proceeds from any disinvestment may be remitted without restriction.
On collective investment securitiesControls apply to all these transactions.
Controls on derivatives and other instrumentsControls apply to all these transactions. No derivative transactions with foreign currency implications are permitted.
Controls on credit operations
Commercial credits
By residents to nonresidentsYes.
To residents from nonresidentsAll foreign borrowing requires RBZ approval and prior approval of the External Loans Coordination Committee. Gold producers undertaking new expansion projects are permitted access to offshore financing in the form of gold loans.
Financial credits
By residents to nonresidentsResidents are not permitted to provide credit to nonresidents without RBZ approval.
To residents from nonresidentsYes.
Guarantees, sureties, and financial backup facilities
By residents to nonresidentsYes.
To residents from nonresidentsYes.
Controls on direct investment
Outward direct investmentThese investments require RBZ and MOFED approval on a case-by-case basis.
Inward direct investmentDirect foreign investment in various sectors is subject to the prior approval of the Zimbabwe Investment Center, normally with the following conditions: (1) up to 100% foreign ownership is allowed in the following priority sectors: manufacturing, mining, quarry and mineral exploration, and development of hotels for tourism; (2) up to 70% foreign shareholding is permitted in specialized services such as management consultancy and construction; and (3) a maximum of 35% foreign ownership (reserved sector list) is allowed in selected sectors, where foreign investors wishing to participate may do so only in joint-venture partnership with Zimbabwean firms or individuals. The reserved sector list is as follows: primary production of food and cash crops; primary horticulture; game, wildlife ranching, and livestock; forestry; fishing and fish farming; poultry farming; employment agencies; estate agencies; valet services; armaments manufacture, marketing, and distribution; public water provision for domestic and industrial purposes; rail operations; grain mill products; bakery products; sugar products; tobacco packaging and grading; and tobacco products.
Controls on liquidation of direct investmentAll foreign investments, irrespective of their source, that have been undertaken through normal banking channels since May 1, 1993, may be repatriated. In all cases, specific applications must be submitted to the RBZ with respect to repatriation of capital. Repatriation at accelerated rates that depend on discounted sale prices of net equity is allowed for investments effected before 1979.
Controls on real estate transactions
Purchase abroad by residentsYes.
Purchase locally by nonresidentsYes.
Controls on personal capital transactions
LoansRBZ approval is required for all loans to or from nonresidents.
By residents to nonresidentsYes.
To residents from nonresidentsYes.
Gifts, endowments, inheritances, and legacies
By residents to nonresidentsYes.
To residents from nonresidentsYes.
Settlement of debts abroad by immigrantsYes.
Transfer of assets
Transfer abroad by emigrantsApplications for emigrant status must be submitted to the RBZ; the settling-in allowance that emigrants may remit abroad is limited to the equivalent of US$1,000 a person or US$2,000 a family. In exceptional cases, the exchange control authorities will consider applications exceeding this maximum. All those applying for emigrant status are required to liquidate their assets within six months after emigrating and invest the total proceeds, less any settling-in allowance granted, in 4%, 12-year Zimbabwe government external bonds.
Transfer of gambling and prize earningsLottery prizes due to nonresidents may be transferred, provided that the funds that were used in betting were originally transferred into Zimbabwe in foreign currency. The winning prize may not be remitted.
Provisions specific to commercial banks and other credit institutions
Borrowing abroadBorrowing abroad is subject to exchange control rules and regulations and the approval of the External Loans Coordination Committee.
Maintenance of accounts abroadThe maintenance of accounts abroad is subject to exchange control rules and regulations.
Lending to nonresidents (financial or commercial credits)Lending to nonresidents is subject to exchange control rules and regulations, and is usually not permitted.
Lending locally in foreign exchangeThese transactions are subject to exchange control rules and regulations.
Purchase of locally issued securities denominated in foreign exchangeYes.
Differential treatment of deposit accounts in foreign exchangeThere are rules that allow for differential treatment of local exporters and companies operating in the export-processing zone.
Reserve requirementsYes.
Liquid asset requirementsYes.
Interest rate controlsYes.
Credit controlsControls apply to mortgage rates of building societies.
Investment regulations
Abroad by banksInvestment abroad by local banks in offshore entities is subject to exchange control approval.
In banks by nonresidentsAcquisition of equity by nonresidents in local banks listed on the ZSE is subject to the ZSE’s rules and regulations. Banks not listed on the ZSE are subject to exchange control approval.
Open foreign exchange position limitsADs are subject to overnight net foreign currency exposure limits. The net open position limits of foreign exchange dealers is the equivalent of US$2 million or 10% of their capital base, and their capital requirements are 5% (core/Tier 1) and 10% (total capital).
On resident assets and liabilitiesYes.
On nonresident assets and liabilitiesYes.
Provisions specific to institutional investorsLocal institutional investors are not permitted to invest in securities registered offshore.
Limits (max.) on securities issued by nonresidentsYes.
Limits (max.) on investment portfolio held abroadYes.
Limits (min.) on investment portfolio held locallyPurchase of shares by foreign investors is limited to 40% of the total equity of the company, with a limit of 10% for one investor. These limits are in addition to any existing foreign shareholdings in companies that existed prior to May 1, 1993.
Currency-matching regulations on assets/liabilities compositionYes.
Other controls imposed by securities lawsNo.
Changes During 2004
Exchange arrangementJanuary 12. A foreign exchange tender came into effect for all transactions that are not effected at the Z$824 per US$1 rate.
January 12. The Z$55 per US$1 rate was eliminated, and all transactions that took place at that rate began to be effected at the Z$824 per US$1 rate.
January 17. The RBZ began to purchase three-quarters of the foreign exchange from the tobacco auction at the tender rate, with the remainder purchased at the Z$824 per US$1 rate.
January 31. The exchange arrangement of Zimbabwe was reclassified to the category managed floating with no predetermined path for the exchange rate from the category conventional pegged arrangement.
November 1. A guaranteed floor exchange rate of Z$6,200 per US$1 was introduced for inward remittances.
November 1. An enhanced carrot-and-stick framework was introduced for horticulture products.
Resident accountsDecember 31. The percentage of export receipts that the FCA accounts of gold producers and tobacco farmers could be credited was raised to 40% from 20%.
Imports and import paymentsFebruary 28. Valuation for customs duty began to be effected at the tender rate.
Exports and export proceedsJanuary 19. The retained 50% of gross export receipts deposited in the FCA must be used within 21 days (previously, 60 days) for purposes specified in a priority list; the foreign exchange not used by this time would be liquidated into the auction market.
Proceeds from invisible transactions and current transfersJanuary 1. Receipts from tourists and sales by international organizations, embassies, and individuals were required to be surrendered to the RBZ at the tender rate.
January 19. Foreign exchange receipts from trade finance facilities and other capital inflows were required to be surrendered to the RBZ at the tender rate.
Changes During 2005
Exchange arrangementMay 19. The guaranteed floor exchange rate for inward remittances was changed to Z$9,000 per US$1.
July 21. The guaranteed floor exchange rate for inward remittances was changed to Z$17,500 from Z$9,000 per US$1.
Resident accountsJuly 21. The liquidation of foreign currency accounts were required to take place at the rate of Z$17,500 per US$1.
Nonresident accountsJuly 21. The liquidation of foreign currency accounts were required to take place at the rate of Z$17,500 per US$1.
Imports and import paymentsJuly 21. The exchange rate of Z$17,500 per US$1 was applied at the tobacco auction floor.
Exports and export proceedsFebruary 1. Tobacco producers were treated as direct exporters for purpose of exchange rate administration and access to foreign exchange.
July 21. Foreign exchange receipts from tourist and foreign exchange rates by international organizations, embassies, and individuals were conducted at Z$17,500 per US$1 instead of the tender rate.
July 21. If surrender of export proceeds took place within 30 days, exporters could retain 50% (previously, 75%) and must surrender the remaining 50% at the support rate of Z$17,500 per US$1 (previously 25% at the tender rate). If surrender of export proceeds took place within in 31–60 days, exporters could retain 45% (previously 25%) and had to surrender the remainder at the support rate (previously, 75% at the tender rate). If surrender took place within 61–90 days, exporters could retain 40% (previously, 60%) and had to surrender 40% at the support rate (previously, 40% at the tender rate).
July 21. The fixed support price cut which gold producers sell their 60% output was set at Z$230,000 per gram; the remainder could be sold in the international market.

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