Zimbabwe's Central Bank to Buy up Excess DiamondsDecember 07, 22
(IDEX Online) - Zimbabwe's central bank is to buy up excess diamonds in a government-structured deal aimed at outlawing smuggling and corruption.
The government hopes the arrangement with the Reserve Bank of Zimbabwe (RBZ) will help it clear an $80m debt owed to the Trade and Development Bank (TDB), formerly the PTA Bank, according to the Zimbabwe Independent newspaper.
It said the bank had confirmed it would use excess diamonds from ZCDC (Zimbabwe Consolidated Diamond Company) to build up national reserves.
The bank's governor told the newspaper: "There is a plan by the government to clear the PTA Bank facility from its books. Going forward we will be getting excess diamonds from ZCDC â€¦ for the building up of national reserves in kind."
The move comes as the government introduces a new policy requiring diamond miners to pay half their royalties in rough stones rather than cash.
Winston Chitando, Zimbabwe's mines and mining development minister, said recently that the country's diamond sector will grow to $1 billion by the end of 2023.
He said Murowa Diamonds and the ZCDC (Zimbabwe Consolidated Diamond Company) "were expanding their operations and would help bring total output to 7 million carats, up from 2 million in 2018."
Pic shows Murawo mine, Zimbabwe