The RBZ has issued two key Foreign Exchange Directives that are essential for all stakeholders involved in international trade and finance:

1. Foreign Exchange Directive FXD2/2025: Your Comprehensive Guide to Compliant Transactions

The Reserve Bank of Zimbabwe, acting under Section 35 (1) of the Exchange Control Regulations, Statutory Instrument 109 of 1996, has published Foreign Exchange Directive FXD2/2025. This consolidated guideline is designed to simplify and streamline foreign exchange processes, making compliance more accessible.

Significance for Your Business: FXD2/2025 merges all previous directives and circulars issued before 22 April 2025 into a single, authoritative document. By providing a clear and unified framework, this directive aims to prevent misunderstandings and errors that could lead to non-compliance and potential penalties. Familiarizing yourself with this guideline is a proactive step in protecting your business’s goodwill and financial standing.

2. Foreign Exchange Directive FXD3/2025: Ensuring Transparency in Foreign Supplier Credit Agreements

Issued on 9 May 2025, Foreign Exchange Directive FXD3/2025 introduces critical new requirements for the accurate registration and reporting of all foreign supplier credit agreements before any payments are made.

Why Compliance is Crucial for Your Business: This directive is a clear indication of the RBZ’s commitment to maintaining the integrity of foreign exchange transactions and preventing illicit financial activities. Failure to comply with FXD3/2025 can result in significant regulatory penalties, reputational damage, and potential disruptions to your supply chain. Protecting your business from such risks starts with diligent adherence to these requirements.

Immediate Actions for Clients to Ensure Compliance and Avoid Losses:

• Register Supplier Credit Agreements Promptly: Ensure all existing and new Supplier Credit Agreements, Arrangements, or Contracts are registered by providing your legal practitioner with comprehensive documentation detailing:
  • The agreed duration of the agreement
  • A clear description of the nature of goods or services
  • All applicable fees
  • The precise payment terms
• Report the Status of Credit Arrangements Accurately and Timely: Provide your legal practitioner with detailed reports on the status of all outstanding and partially paid invoices for goods and services received under credit arrangements. These reports must be submitted within 14 days of receiving the goods or services and must include:
  • The full legal name and country of the foreign supplier
  • A precise description of the imported goods or services
  • All relevant invoice number(s), the date of issuance, the total value, and the currency
  • The agreed tenor (duration) of the credit arrangement
  • The exact date when the goods or services were received

Protecting Your Goodwill and Bottom Line Through Compliance:

By ensuring your compliance with FXD3/2025, you actively:

• Mitigate the risk of significant financial penalties imposed by regulatory authorities.
• Safeguard your business’s reputation and goodwill, which can be severely damaged by instances of non-compliance.
• Avoid potential disruptions to your operations that may arise from regulatory scrutiny and penalties.
• Maintain transparent and ethical business practices, fostering trust with your stakeholders and partners.

We urge you to prioritize the accurate and timely fulfillment of these new requirements. Our expert team is prepared to offer comprehensive support and guidance to ensure your business remains compliant and protected. Do not hesitate to reach out to us for clarification or assistance.

By Georgina Ndava

Partner

Chiredzi Branch