RBZ Dismisses Claims of Forced Foreign Currency Exchange for Diaspora Remittances Amid Viral Video Controversy

Reserve Bank Assures Public: No Changes to Diaspora Remittances Policy Despite Viral Video

The Reserve Bank of Zimbabwe (RBZ) has firmly dismissed reports circulating on social media suggesting that it plans to alter the current Diaspora Remittances Policy and forcefully withhold all foreign currency that comes through diaspora remittances.

This comes after RBZ deputy director, William Mamhimanzi was heard in a video which has since gone viral stating that RBZ was exploring measures on how best to forcefully withhold all the foreign currency sent back home by diasporans.

“This could include forcing those who get money from their relatives in the diaspora to change it into local currency,” William Mamhimanzi said in the video.

His remarks led to fears that the RBZ might be planning to revise the current policy governing remittances from abroad.

Check out the video;

https://x.com/HStvNews/status/1824335968230342693?t=u2fMP7eW_FCJxYYnLR3DCg&s=19

Also Read: ZiG Currency Revamp: RBZ Governor Announces Major Changes to Banknotes and Coins, Unveils New Denominations

However, the RBZ has released a statement to set the record straight.

In the statement, the RBZ Governor John Mushayavanhu clarified that the discussions in the video were misinterpreted, leading to unwarranted fears about a potential overhaul of the 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.”

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 also have the liberty to exchange them at their chosen licensed agencies, in line with global best practices.

“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 compelled to exchange their foreign currency funds at the time they collect them or at any other time.

“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.”

The post RBZ Dismisses Claims of Forced Foreign Currency Exchange for Diaspora Remittances Amid Viral Video Controversy appeared first on iHarare News.