US$ liquidity seen improving

RESEARCH firm Inter Horizon (IH) Securities has projected a boost in United States dollar liquidity as firms convert a portion of their earning into local currency to meet tax obligations.

To create more demand for the Zimbabwe Gold (ZiG), government proposed that corporate income tax will be settled on a 50:50 basis for companies whose forex revenue exceeded 50%, while this tax will be payable in proportion only in the currency of trade where local currency transactions dominate.

In another measure to boost demand for the local currency, user fees to government departments are to be payable in local currency unless specifically provided otherwise.

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