RBZ scraps fuel subsidies, revise letter of credit terms

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    HARARE- The RBZ has announced that it is discontinuing the subsidization of fuel imports with immediate effect, in a move seen as an attempt to fully liberalise the foreign exchange market as well as reduce its involvement over the interbank market’s control.

    In a statement released on Monday, the Central Bank said with effect from 21 May, 2019, the procurement of fuel by Oil Marketing Companies shall be done through the interbank market.

    The apex bank said there shall be only 1 exchange rate to be used for the purposes of importation of all goods and services. This means that the 1:1 exchange rate which was being used for the importation of fuel shall be discontinued.

    RBZ had retained a number of goods and services including fuel as being eligible for forex allocation at 1:1 exchange rate to minimize the effect of inflation.

    – EQUITY AXIS NEWS

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