The Reserve Bank of Zimbabwe has increased foreign currency surrender requirements for exporters from 25% to 30% and mandated bank accounts for all traders in HARARE on February 7, 2025. The measures aim to boost official forex reserves amid rising US dollar inflation rates.
RBZ Governor John Mushayavanhu unveiled the changes in his 2025 Monetary Policy Statement as Zimbabwe’s new currency, the ZiG, faces mounting pressure from increased dollarization. US dollar inflation jumped 10.9 percentage points to reach 11.5% last month.
“These additional surrender requirements will help meet local currency needs while supporting the ZiG,” Mushayavanhu said. Exporters can invest their extra 5% surrender in an RBZ-controlled US dollar deposit facility.
The central bank ordered all businesses to maintain functional point-of-sale machines capable of processing both ZiG and US dollar transactions. Local authorities must verify bank accounts and POS compliance before issuing or renewing business licenses.
Despite challenges, Zimbabwe’s foreign currency reserves have grown 90% to US$550 million (ZiG14.3 billion) as of January 2025, according to central bank data.
The informal sector continues to dominate Zimbabwe’s foreign currency generation, prompting new measures targeting small traders. The RBZ will waive transaction fees for payments under US$5 or its ZiG equivalent to encourage formal channel usage.
“The focus is on increasing foreign currency circulation through official channels,” said a senior RBZ official who requested anonymity. “We’re particularly concerned about forex retention in the informal sector.”
Market analysts warn that increased surrender requirements could discourage formal exports. “Higher surrender rates may push more trade underground,” said economist Thomas Moyo at the University of Zimbabwe.
The new measures reflect Zimbabwe’s ongoing struggle to stabilize its currency while managing an increasingly dollarized economy. Previous attempts to control foreign currency flows have had mixed results.
