Zimbabwe’s Central Bank Chief Speaks On Forex Purse

Top Stories Zimbabwe

Golden Sibanda

Zimbabwe’s foreign currency receipts have gone up by 18, 2 percent to US$5,8 billion since November 2019.

In an interview with The Herald, Reserve Bank of Zimbabwe governor Dr John Mangudya attributed the nostro balances to improved exports, Diaspora remittances and “a better business operating environment”.

Dr Mangudya said individuals and private companies have US$1,1 billion nostro account holdings, and the money could fund production and imports.

“The money is foreign currency that is in the country and it is there to liquefy the economy. “This is where the 30 percent surrender requirement for corporate and the 20 percent domestic deposits by retailers used for the auction comes from.

“The higher the holdings the better for the foreign currency auction system to sustain production and productivity, which stabilises the exchange rate, prices and inflation, which is good for the consumer, investors and everyone.”

He went on: “The banking sector foreign currency deposits stand at US$1,1 billion and this reflects holdings for Zimbabwean individuals and entities and the money is derived from exports, Diaspora remittances, loans and other sources.

“We have seen significant improvement in foreign currency holdings. If you look closely you see that exports have gone up and as at November 30,2020, exports had gone up 18,2 percent compared to 2019 from US$4,9 billion to US$5,8 billion.”