Zimbabwe’s central bank has moved to control parallel foreign currency exchange rates by compelling Bureaux de Change in the country to charge their rates almost in line with the official interbank market.

In a directive released on Saturday, the RBZ has that Bureaux de Change trades should be at a margin of around 7 percent of the interbank mid-rate.

Today, the interbank mid-rate stood is circling around 14,9.

Said the apex bank:

“The current interbank foreign exchange market is currently governed by the willing seller – willing buyer concept, without making reference to the interbank foreign exchange rate.

“In order to bring sanity on the operations of the Bureaux de Change…all the interbank trades shall be processed at a margin of plus or minus 7 percent of the interbank mid-rate.”

Meanwhile, the RBZ has also directed that for those travelling outside Zimbabwe who are in need of foreign currency, bureaux de changes shall sell foreign currency cash upon submission of a passport.

Current cash limits for personal travel allowance of US$300 per day, per travel, and up to a maximum of US$10 000 per year shall be applicable, according to the RBZ regulations.

“The Bureaux de Change are, henceforth, required to endorse passports of travelers who would have purchased foreign currency (and) shall be required to strictly adhere to the daily reporting requirements to the Central Bank; and the Bureaux de Change are required to visibly display the interbank exchange rate on their FX rate boards,” said the central bank.

To enforce the regulations, the Financial Intelligence Unit (FIU) and Exchange Control Division of the RBZ will mobilise resources to enforce compliance by all foreign exchange market players and non-compliance will result in financial penalties or withdrawal of operating licence.