By Derick Tsimba

The Reserve Bank of Zimbabwe (RBZ) has issued out guidelines on the treatment of foreign currency transactions by individuals, International Organisations, Non-Governmental Organisations (NGOs) and Embassies.

Through Exchange Control Circular No. 8 of 2019 RBZ says: “Foreign currency received by individuals, international organisations, NGOs and embassies is regarded as free funds for Exchange Control purposes. Free funds shall continue to be received and retained in designated Nostro (FCAs). Free funds may be used for settlement of foreign transactions for the procurement of goods and/or services.

“Given that foreign currency received by international organisations, NGOs and Embassies is categorised under free funds, the salaries for their staff shall continue to be freely transferrable into individual FCAs at the discretion of the NGO or embassy. When the employees of the NGOs, embassies and international organisations intend to transact on the domestic market, the foreign currency should be converted into local currency through a bank or Bureau de Change.”

Harare Post has learnt that with effect from 24 July 2019, Bureaux De Change may sell foreign currency to individuals for purposes of funding foreign tuition fees, medical expenses and foreign subscriptions. It may also sell foreign currency to Micro, Small and Medium Enterprises (MSMEs) including cross border traders and individuals, for the purpose of paying for importation of goods and services.

A Bureau de Change may also sell foreign currency to individuals for business travel allowance and/or personal travel allowance.