Zimbabwe, Chinese Businesses In Currency Swap Deal

Finance and Economic Development Minister Mthuli Ncube said that Zimbabwe has entered into a currency swap arrangement with China.

This will allow potential investors coming from China to swap or exchange their foreign currency with Chinese investors already in Zimbabwe who wish to send their money to China.

The Chinese investor in Zimbabwe would then release the Zimbabwe dollar equivalent of the US dollar to the local bank account of the payer in China. Said Ncube:

We have entered into a currency swap arrangement, what this means is that some would be investing in Zimbabwe from China and those who require their proceeds to be remitted back to China which is normal.

So, the idea is those individuals will then swap (currency) so that those who are investing in Zimbabwe are able to give them a domestic currency and they use the foreign currency which they are bringing in for investment to pay those who are exiting.

The currency swap of US dollars for Zimbabwe dollars will be done with the approval of the Reserve Bank of Zimbabwe and the Ministry of Finance.

The move is meant to increase trade and investment between China and Zimbabwe.

More: ZTN

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