Zim earns $2.8bn foreign currency receipts

Zim earns $2.8bn foreign currency receipts
Published: 13 July 2017
THE Reserve Bank of Zimbabwe (RBZ) says the country has for the first half of the year received $2,8 billion in foreign currency receipts.

RBZ governor, John Mangudya said of the amount, $2 billion was allocated through local banks, with the remainder apportioned through the apex bank.

"You want to know that from January to June, we have received, from these sources, $2,8 billion. You might want to know that Rwanda, for example, exports in that country were $1,2 billion per year, but for us, it is $2,8 billion receipts in six months, that's a lot of money by any standard," he told a media and business stakeholders symposium hosted by the University of Zimbabwe.

The central bank chief said there was no justification for banks to deprive depositors of cash because they received a huge chunk of the export receipts.

"Out of $2,8 billion, $800 million was allocated through the RBZ and the other $2 billion was allocated through the banks. Then you go to any bank and they tell you we have no money and yet they have access to $2 billion not us (RBZ). It appears that the 30% ($800 million) we are managing ourselves has more impact. Although 70% ($2 billion) was better than 30%. That's why, as RBZ, we keep monitoring banks. That money doesn't belong to the Reserve Bank of Zimbabwe or banks but to people of Zimbabwe," he said.

Mangudya said the country has $350 million in nostro accounts against the required $600 million, adding that the mismatch between local RTGS money and nostros was breeding a multiple pricing system.

"On the three-tier pricing system, I have said there are more local dollars than foreign dollars, so the premiums arise because people want to put equilibrium between the local dollars and foreign dollars. So there is bound to be a 5 to 25% premium on the market. So those premiums translate into a three-tier pricing system. I am not saying it's good or bad, but I am saying what is there. I have just come here to tell you the truth. That there is a RTGS price for the US dollar cash because there is more RTGS than US dollar. The foreign dollar is stronger than the local dollar," he said.

The country's fiscal and current account deficit was causing cash problems in the country, he said.

Mangudya said from 2008 to date, Zimbabwe has lost 50 corresponding banks due to country risk composed of political and sovereign risk.

He said challenges besetting the economy are a huge fiscal deficit, expenditure higher than revenue, current account deficit, low productivity, market indiscipline, corruption, side marketing, illicit financial flows.

Mangudya said the country was suffering from low productivity and there was need to push exports and wean it from over reliance on tobacco, gold, platinum and ferrochrome.

The country's source of foreign currency comes from exports of 62%, remittances 25%, loans 5%,income receipts 4% and foreign direct investments 4%.
- newsday
Tags: Zimbabwe, Forex,


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