News / National
Zimbabwe foreign currency remittances hit US$1,2 billion
26 Jul 2024 at 06:39hrs | Views
FOREIGN currency remittances surged by 16,5% to hit a record US$1,2 billion in the first half of 2024 leaving diasporans standing out as lucrative foreign currency earners for the economy.
The latest stats were revealed by Finance Minister, Mthuli Ncube in the 2024 Mid-Term –Budget Review reflecting a very positive recovery.
"Remittances grew significantly by 16.5%, from US$1 billion in the first half of 2023 to US$1.2 billion in 2024, reflecting higher inward remittances from the diaspora, resulting in a favourable impact on the current account balance," he said.
The country has an estimated one to three million citizens living in South Africa, about 128 000 in the United Kingdom and many others across Europe credited for immense foreign currency inflows.
During the year's first half period, total foreign currency receipts increased by 9,5% to US$6,2 billion during the period from January to June 2024, from US$5,6 billion received during the same period in 2023, largely driven by the growth in export receipts.
The seven main exports during the period from gold, agricultural commodities and manufactured products, as well as diaspora remittances.
In line with this improvement in foreign currency receipts, preliminary estimates indicate that the current account recorded a surplus of US$19,2 million in the first half of 2024, a turnaround from the deficit of US$13,8 million recorded in the same period last year.
To year-end, the current account surplus is projected to narrow to US$44.5 million in 2024, relative to a surplus of US$133.9 million recorded in 2023.
The latest stats were revealed by Finance Minister, Mthuli Ncube in the 2024 Mid-Term –Budget Review reflecting a very positive recovery.
"Remittances grew significantly by 16.5%, from US$1 billion in the first half of 2023 to US$1.2 billion in 2024, reflecting higher inward remittances from the diaspora, resulting in a favourable impact on the current account balance," he said.
The country has an estimated one to three million citizens living in South Africa, about 128 000 in the United Kingdom and many others across Europe credited for immense foreign currency inflows.
During the year's first half period, total foreign currency receipts increased by 9,5% to US$6,2 billion during the period from January to June 2024, from US$5,6 billion received during the same period in 2023, largely driven by the growth in export receipts.
The seven main exports during the period from gold, agricultural commodities and manufactured products, as well as diaspora remittances.
In line with this improvement in foreign currency receipts, preliminary estimates indicate that the current account recorded a surplus of US$19,2 million in the first half of 2024, a turnaround from the deficit of US$13,8 million recorded in the same period last year.
To year-end, the current account surplus is projected to narrow to US$44.5 million in 2024, relative to a surplus of US$133.9 million recorded in 2023.
Source - newzimbabwe
