Government is finalising discussions with the African Export-Import Bank (Afreximbank) towards a US$500 million Nostro Stabilisation Guarantee Facility (NSGF) to provide Nostro FCA holders with assurance that foreign currency shall be available when required by the account holders, the Reserve Bank of Zimbabwe (RBZ) has revealed.
Addressing stakeholders at the RBZ offices in Harare on the mid term monetary review yesterday RBZ Governor, John Mangudya, said the NSGF will be in place by the end of October 2018.
"The NSGF which will be similar to the AFTRADES Facility that guarantees interbank trading in Zimbabwe is targeted to be in place by the end of October 2018.
"For the avoidance of doubt, foreign currency in the Nostro FCAs pertains to free funds, diaspora remittances, international organisations' remittances, portfolio investment inflows, loan proceeds and export retention proceeds.
"It is also essential to note that all exporters retain 100% of their export proceeds with the exception of gold producers that retain 30% of export proceeds; platinum, diamonds and chrome 35% and; 20% for tobacco and cotton producers," Mangudya said.
He added that they have finalised putting in place facilities in an amount of US$500 million to cater for importation of strategic requirements that include fuel, electricity, cooking oil, wheat, packaging,among others.
"It is also essential to note that all exporters retain 100% of their export proceeds with the exception of gold producers that retain 30% of export proceeds; platinum, diamonds and chrome 35% and; 20% for tobacco and cotton producers.
"The Bank has finalised putting in place facilities in an amount of US$500 million to cater for importation of strategic requirements that include fuel, electricity, cooking oil, wheat, packaging, etc.
"The facilities are from Gemcorp US$250 million, Afreximbank US$150 million and Afrigrain US$100 million. These facilities are over and above the US$100 million from CDC/Standard Chartered Bank, US$100 million from Ecobank, US$30 million from IDC of South Africa to Agribank and US$25 million from the African Development Bank (AfDB) to CABS Building Society," he said.
