Zimbabwe receives $3bn foreign currency inflows

ZIMBABWE has received about $3 billion foreign currency inflows in the first half of the year and stands a chance to generate more through increased exports.

Reserve Bank Governor Dr John Mangudya revealed this here yesterday while addressing captains of industry and potential investors at the on-going Confederation of Zimbabwe Industries (CZI) Congress and International Investment Forum.

He said diaspora remittances and other foreign revenue streams were greatly assisting in stabilising the economy. Dr Mangudya also reported that the interbank foreign exchange market was now trading about $2 million per day, which is an increase from $500 000 that was being traded earlier. The formal forex trading market was introduced in February this year and recently struck equilibrium with parallel market rates.

"As a bank we need to share as much information as possible to leaders of industry and analysts for you to understand business and so that there is no information asymmetry in the country. I am talking about the interbank market, which started in February.

"We have seen that the interbank market has been moving perfectly and we are happy with the performance especially after the S.I. 142.

"We have seen trades of $2 million per day on purchase by banks from their customers," said Dr Mangudya.

"Over the six months period of January to June 2019 the total export receipts amounted to $1,7 billion with other receipts, loan proceeds and foreign investments amounting to $1,3 billion giving us a total of $3 billion."

Dr Mangudya said despite the negative publicity the country and Central Bank were getting, especially in the media, the apex bank was inspired to work harder and would continue to share critical information with all relevant stakeholders so as to dispel misinformation.

"So, some will say the RBZ has $3 billion. We're not keeping this money, it's the economy that earned $3 billion from among other sources, diaspora cash-outs, tobacco receipts and others and we're quite happy with the performance," he added.

Dr Mangudya said platforms such as the CZI forum were critical in addressing some of the impediments affecting the economy such as lack of confidence and lack of competitiveness. He called for unity of purpose among Zimbabweans saying the economy needs a collective support for it to succeed.

Speaking at the same event, Zimbabwe Stock Exchange chief executive officer, Mr Justin Bgoni, said the country needs market-led solutions. Mr Mussa Yakubu from the Nigerian Embassy said Zimbabwe's economic challenges were common across Africa hence the need for co-operation across borders.