Zim Foreign Currency Receipts Hits US$9,7 Billion

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By Alois Vinga

A TOTAL US$9,7 billion receipts were injected into the economy last year, breaking the levels reached during the dollarisation era.

Data contained in the latest Reserve Bank of Zimbabwe (RBZ) Monetary Policy Statement shows that foreign currency receipts registered a 53,5% increase from 2020 levels.

“The country recorded its highest ever foreign currency receipts of US$9,7 billion in 2021, an increase of 53,5% from 2020.This performance, which dwarfs the previous record of US$7.6 billion recorded in 2013, is attributable to increased international commodity prices, increased international remittances and the gold incentives put in place by the government,” the RBZ said.

Out of the total, export remittances topped the list at US$6,1 million recording a 66,6% increase from yesteryear’s levels.

Diaspora remittances topped US$1,4 million, registering a staggering 43% increase, Non-Governmental Organisations brought in US$975 million while loan proceeds raked in US$876 million.

The central bank also notes that international remittances reached US$2,4 billion as at December 2021, an increase of 46% from the recorded 2020 levels.

Since the last monetary policy statement issued in August 2021, the RBZ has remained steadfast and resolute in its quest to foster domestic macroeconomic and financial system stability.

“Notwithstanding the Covid- 19 induced effects on inflation and wider macroeconomic stability, year-on year inflation went down from a peak of 837.5% in July 2020 to 60.7% in December 2021,” the bank said.

The conservative monetary targeting framework currently being pursued by the Bank has seen quarterly growth in reserve money being successfully contained within the desired targets throughout 2021.

During the period under review, the banking sector also remained safe and sound with demonstrable capacity for increased support to the recovery of the economy even in the face of vulnerabilities induced by the Covid-19 pandemic.