Zimbabwe’s minister of finance, Mthuli Ncube, has unveiled additional measures to bolster the stability of the country’s economy and local currency. 

The government is committed to preserving macro-economic stability, regaining confidence in the economy and maintaining the Zimbabwean Dollar’s purchasing power, the minister stated.

As of 1st June, Treasury will fund the Zimbabwe dollar component of the 25% foreign currency surrendered by exporters to prevent additional money supply being created, Ncube went on to say. 

In addition, the finance minister introduced a 1% tax on all foreign payments and a requirement to pay all fuel excise duty in foreign currency, Xinhua news agency reports.

Ncube said all government agencies, as well as parastatals, will collect fees in the local currency to boost its usage. As it stands, only around 30% of transactions are made using the Zimbabwean Dollar compared to over 70% in USD. 

Furthermore, electricity bill payments by non-exporters will be made in local currency.

The finance minister added that all customs duties would be paid in local currency, with the exception of luxury goods, where the importer chooses to pay in foreign currency. 

Ncube also stated that all proceeds from exports that have not been used after 90 days would be liquidated onto the interbank market, and the government will continue to deal with excess liquidity by the issuance of Treasury bills.

“The assumption of the external obligations by Treasury and implementation of non-inflationary financing of the liabilities, coupled by sourcing of additional resources, will go a long way in reducing money supply growth and its impact on exchange rate depreciation and price increases,” the minister of finance stated.