PADENGA Holdings (Padenga) says it is engaging the Reserve Bank of Zimbabwe after the lowering of the foreign currency retention threshold from 85 percent to 75 percent to ensure business activities are sufficiently sustained.
The move, according to policymakers, would improve the foreign exchange resources that the government and the central bank could use to meet foreign exchange obligations for settlement of both domestic and foreign loans.
While it is also poised to strengthen the local currency by selling the US dollar in the retail and wholesale auction markets, some analysts warn that it will force some businesses to start sourcing forex from the parallel market, which may result in inflation surging northwards.
“Management is engaging relevant stakeholders to minimise the impact of this change on the business,” the company said in a trading update for the third quarter ended September 30, 2023.
During the nine months to September 30, 2023, Padenga’s gold sales increased by 12 percent to 1,664.8 kg from 1.480kgs in the comparable period last year on the back of an increase in tonnes milled and mill feed grade.
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