controversy at tobacco auction floors as
The tobacco marketing season began on Wednesday, but the Reserve Bank of Zimbabwe (RBZ) threw preparations into disarray after it reneged on its earlier commitment to pay farmers 50% of their sale proceeds in foreign currency.
Instead, the central bank says farmers will now be paid 100% in RTGS$.
“Merchant is going to get 100% RTGS$ to enable purchase of tobacco. The farmer will get 100% RTGS$ sales proceeds after deducting all other costs. The farmer will have to, if they require the foreign currency, buy back the 50% foreign currency component using sale date exchange rates and the foreign currency will be credited in their Local FCA Account with their bank,” RBZ said in a communique.