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Tuesday, 3rd February 2009 (2125 views)

Zimbabwe has relaxed its gold trade regulations following a fall in output during 2008.

Under the new rules, the central bank will permit producers to sell their own bullion, according to Reuters.

Gideon Gono, governor of the Reserve Bank of Zimbabwe, revealed that the amount of their total earnings that gold miners would be allowed to hold onto would increase from 40 per cent to 92.5 per cent in order to boost production.

"Gold producers shall make arrangements to market and ship gold to wherever they so wish," he declared.

The Chamber of Mines has stated that gold production in the country dropped by over a third in 2008 (37 per cent) to seven tonnes as a result of problems caused by foreign exchange shortages and power cuts, AFP reported.

Zimbabwe's central bank has struggled to pay gold miners in some cases as a result of shortages of foreign currency, problems with equipment supply and overvaluation of the local currency.

Last month, the Harare announced that companies would be permitted to a charge for goods and services and pay workers in foreign currencies.

 

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