Foreign currency receipts hit US$9,9 billion

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By Alois Vinga

FOREIGN currency receipts recorded have so far reached a total US$9,9 billion, Reserve Bank of Zimbabwe (RBZ) deputy governor, Innocent Matshe has revealed.

Matshe said this confirmed surging foreign currency inflows.

“The year 2022 saw the country recording a record high foreign currency receipts in 10 years. The trend is continuing in 2022, with US$9,9 billion recorded as at 18 November, compared to US$8 billion during the same period in 2021 signifying a 24% increase,” he said.

“Strong foreign currency receipts relative to foreign payments, coupled with monetary restraint, should sustain favourable exchange rate dynamics.

“Economic activity was robust at 4% estimated for 2022 and 3,8% projected for 2023, which is well above the sub-Saharan African average of 3,6%,” Matshe said.

The central bank official said on the back of the revenue developments, there was sustained availability of goods in retail shops and elevated manufacturing capacity utilisation which has seen the rise from 47% in 2020 and 56,3% in 2021.

The CZI’s Business Tendency Survey (BTS) also shows positive sentiments for the quarter ended June 2022, with the financial sector remaining in a safe and sound condition and able to underwrite significant business in both local and foreign currency.

“Robust foreign exchange inflows, supported by foreign reserve balances in the form of Nostro bank reserves and Special Drawing Rights (SDRs), added to continued fiscal sustainability as evidenced by no recourse to Central Bank overdrafts and stable, liquid and efficient national payments system also reinforced stability,” added Matshe.