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Mining Industry Welcomes Liberalisation Of Forex Allocation For Fuel.

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The Chamber of Mines of Zimbabwe (CoMZ) has welcomed government’s move to liberalise the procurement of fuel by abandoning the 1:1 rate for fuel companies saying the move will help the market forces to determine exchange rates.

Addressing journalists in the capital today, CoMZ president Batsirai Manhando said the development is a right step towards liberalisation of the market

“This is a step to liberise and we think that the market can allocate forex more efficiently so its still early to comment but from an industry perspective this is the right step towards making sure that liberalisation of the market and the market forces to determine the exchange rate.

“We think there will be more efficient allocation in our view,” he said.

Meanwhile CoMZ Chief Executive Officer Isaac Kwesu said the move will reduce pressure from the Reserve Bank of Zimbabwe.

“It is our take that when you come up with the right price you reduce pressure from mere expectation that liquidation of nostro to support the interbank market will come from one side.

“Whilst its still early but signs are that as long as the price of foreign exchange is fair,we have more volumes coming to the market.

The Central bank on Tuesday this week liberalised the allocation of foreign currency for fuel traders who can now access forex on the interbank market at prevailing exchange rates instead of the 1 USD:1 RTGS rate which the traders used to access money from the apex bank.

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