$600M BAIL OUT FOR ZIM | Reserve Bank governor, Dr John Mangudya says Zimbabwe has secured $600 million to plug foreign currency shortages on the market.
Mangudya said RBZ will this week introduce a $600 million Nostro Stabilisation Facility from Cairo-headquartered African Export Import Bank (Afreximbank).
This nostro stabilisation facility is meant to deal with ongoing delays in the processing of foreign payments by banks for the procurement of productive imports as part of a raft of measures to stabilise the economy.
The facility will cover the foreign currency gap that widened after closure of the 2017 tobacco marketing season. RBZ expected foreign exchange receipts from platinum and chrome to be treated in the same manner as gold, diamonds, tobacco and cotton to ensure that the nostro stabilisation facility is supported by a continuous stream of export receipts.
Another export incentive scheme worth $300 million is expected to help the situation. “We are making supplementary allocations of US$30 million on a weekly basis for basic and essential imports.
“Specifically, fuel is getting US$10 million per week, US$4 million per week for cooking oil raw materials, US$5 million towards electricity and around US$2 million for pharmaceuticals.
“Nothing material has changed in the availability of foreign currency. To the contrary, exports have gone up.”