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Zimbabwe's diaspora remittances top US$797m in six months

by Staff reporter
12 Aug 2022 at 06:43hrs | Views
ZIMBABWE received a total US$797 million in diaspora remittances, representing a 23% increase on the same period last year, latest Reserve Bank of Zimbabwe (RBZ) data has revealed.

Data in the Mid-Term Monetary Policy Statement published Thursday shows considerable growth of US$ inflows into the country.

"Of the total amount, diaspora remittances amounted to USD797 million, a 23% increase from US$650 million received during the same period in 2021," reads the statement.

"International remittances received through the normal banking system on behalf of International Organizations amounted to US$575 million, an increase of 24% from US$463 million recorded during the same period in 2021."

However, considering the existence of informal remittance channels , the country's diaspora remittances could be way underestimated.

The blueprint also shows that as at June 30 2022, total international remittances amounted to US$1,372 billion, an increase of 23% from the US$1,113 billion recorded during the same period in 2021.

For the first half of 2022, banks processed foreign payments amounting to US$3,78 billion. This represents a 19% increase in foreign payments from US$3,19 billion recorded for the same period in 2021.

The upward trajectory in foreign payments was largely on account of increased global prices for fuel and electricity.

"Total foreign currency receipts for the period 1 January to 30 June 2022 amounted to US$5.45 billion compared to US$4,07 billion received during the same period in 2021, representing a 33,6% increase. This shows a significant growth in receipts during the first half of the year," the MPS said.

Market analysts have since attributed the positive performance to reliable banking sector policies back home which have seen the banking public accessing their US$ deposits without any hindrances as opposed to the past where inconsistencies saw the public experiencing hurdles in policy consistency.

Source - NewZimbabwe