The Reserve Bank of Bank of Zimbabwe (RBZ) has said that it expects increased foreign currency this year from minerals, tobacco, cotton, improved diaspora remittances and the usage of free funds.
The revelation was made by RBZ deputy governor Kupukile Mlambo who told Business Times that the country has more foreign receipts than other better-performing economies in Africa despite having no Foreign Direct Investment (FDI). He said:
We are expecting forex receipts of US$7bn by year-end which is an improvement from US$5.5bn last year due to minerals, tobacco, cotton, improved diaspora remittances and the usage of free funds. That money is enough to cater for all our forex needs.
Mlambo also said that the banking sector which now does business on the interbank trading platform was contributing to increased forex.
This comes as there is a huge scarcity of foreign currency in the country against high demand as the government, businesses and individuals need forex to import commodities from beyond the country’s borders for consumption and business.
More: Business Times