Exchange rate mismatch costs Zim miners – report

Mining companies operating in Zimbabwe are losing 20% of their export earnings due to the exchange rate mismatch, according to media reports citing a survey commissioned by the country’s chamber of mines.
The gap between the official and black-market currency exchange rates had been widening with the Zimbabwe dollar trading at 93 to the United States dollar on the official market and 180 on the parallel market.
Exporters from Zimbabwe are required to surrender 40% of their foreign currency earnings to the central bank, in exchange for local currency at the official rate.
“Almost all respondents indicated that the value of the surrender portion that is liquidated into local currency at the official auction-rate has been significantly eroded on the back of the parallel market rate which is used for pricing goods and services by local suppliers,” Reuters cited the report as saying.
“Respondents highlighted that the exchange rate disparities have resulted in mining companies losing 20% of gross export proceeds.”
Meanwhile, central bank governor John Mangudya, who addressed miners at the launch of the report, said they are expecting to earn $4.4 billion from mineral exports this year compared to $3.65 billion last year, with platinum group metals and gold accounting for 82% of the earnings.
He also said the miners would be allowed to retain 80% of their export earnings if they boost production. 

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished