Reserve Bank Assures Public: No Changes to Diaspora Remittances Policy Despite Viral Video
The Reserve Bank of Zimbabwe (RBZ) has firmly refuted social media reports claiming it plans to revise the Diaspora Remittances Policy and forcibly withhold foreign currency from diaspora remittances.
This comes after RBZ Deputy Director William Mamhimanzi was heard in a viral video suggesting that the RBZ was exploring measures to forcibly withhold all foreign currency sent home by diasporans.
His remarks led to fears that the RBZ might be planning to revise the current policy governing remittances from abroad.
Check out the video from HStv News;
The @ReserveBankZIM says it will be looking at how to keep foreign remittances in the bank. This could include forcing those who get money from their relatives in the diaspora to change it into local currency. – full submission #CapitalMarkets on this link… pic.twitter.com/VE0JjBt2c9
— HStvNews (@HStvNews) August 16, 2024
RBZ Governor Dispels Fears of Policy Overhaul Following Viral Video
In response to the circulating rumours, the Reserve Bank of Zimbabwe (RBZ) has issued a statement to set the record straight.
In the statement, RBZ Governor John Mushayavanhu clarified that the discussions in the viral video were misinterpreted, leading to unfounded fears of a potential overhaul of the Diaspora Remittances Policy.
“The Reserve Bank has noted the circulation of a video on social media whose discussion was focused on strategies for formalisation of the informal sector and the resultant concerns from the market regarding misconstrued plans to review the current Diaspora Remittances Policy.”
Also Read: Here Is The Reason Why Zimbabwe Prioritizes Remittances
No New Diaspora Remittances Policy Planned
The RBZ clarified that there are no plans to change the existing Diaspora Remittances Policy.
He stated that recipients of diaspora remittances can receive their funds in foreign currency and have the freedom to exchange them at their preferred licensed agencies.
“Accordingly, the Reserve Bank wishes to put it on record that there are no plans to introduce a new Diaspora Remittances Policy. In terms of our current Exchange Control regulations, diaspora remittances are treated as free funds, which recipients can receive in foreign currency and change freely at their instance and preferred licenced agencies, as is the best practice globally.”
Diaspora Remittances: A Pillar of the Economy
The RBZ highlighted the critical role that remittances play in Zimbabwe’s economy, noting that they account for 17% of the country’s total foreign currency receipts.
“For the record, the diaspora remittances have continuously supported the economy, accounting for 17% of the total foreign currency receipts. Given the importance of remittances in the economy, the Reserve Bank will continue to explore incentives to boost remittance flows and not to hinder such as misconstrued.”
RBZ Clarifies No Plans to Withhold or Force Exchange of Diaspora Remittances
The RBZ assured the public and all relevant stakeholders that recipients of diaspora remittances will not be required to exchange their foreign currency funds either at the time of collection or at any later date.
“The Reserve Bank would like to assure the public and all stakeholders that recipients of diaspora remittances will NOT be FORCED to change their free funds at the point of collection and at any other time.”
