New Zimbabwe.com

Foreign currency deposits increase 5.41 %

By Alois Vinga


FOREIGN currency deposits have maintained a growth trajectory, increasing by 5.41 % indicating a significant recovery from the slump which was experienced in the month of July 2019.

This is according to a recent monthly economic review by the Reserve Bank of Zimbabwe.

The latest monthly report covering the period ending August 31 2019, shows foreign currency inflows have significantly recovered.

“In the month of August 2019, foreign currency accounts deposits rose to 29 % up from 24 % in the month of July 2019,” says the report.

The deposits had dwindled from 26 % recorded in June 2019, a month in which government moved to abolish foreign currency deposits.

The report also says credit to the private sector registered a monthly growth of 10 %, from $6 billion in July 2019 to $6.1 billion in August 2019.

On a year to-year basis, credit to the private sector grew by 64 % in August 2019.

Outstanding credit to the private sector was distributed as follows; households 22 %; agriculture 21%; services 13 %; distribution 13.10%; manufacturing 10 %; financial organisations and investments, 10 %; and mining 7 %.

Merchandise imports registered a decline of 22 %, from US$458.6 million in June to US$357.0 million in July 2019. The decline was largely underpinned by lower imports of fuel, notably diesel and petrol.

Monthly merchandise exports rose by 25 %, from US$240 million in June, to US$300 million in July 2019.

The increase was attributable to a rise in export earnings from gold 41%; nickel ore and concentrates 28 % and ferrochrome 28.1%.

The country’s total merchandise trade declined by 6.0%, to close at US$656  million in July 2019, from US$698  million recorded in the previous month.

This was, largely underpinned, by the significant slowdown in merchandise imports. Merchandise Exports Monthly merchandise exports rose by 24.9%, from US$240 million in June, to US$299.5 million in July 2019.

The increase was attributable to a rise in export earnings from gold (41 %); nickel ore and concentrates (27.8%); and ferrochrome (28.1%).

However, the country’s export basket remained largely concentrated in a few primary and semi-processed commodities, which included; gold; ferro chrome; flue-cured tobacco; diamonds; and cane sugar.