By Alois Vinga
ZIMBABWE this week received nearly US$1 billion from the International Monetary Fund (IMF) strengthening the country’s foreign currency position.
In a joint statement, Finance Minister Mthuli Ncube and Reserve Bank of Zimbabwe (RBZ) governor John Mangudya said the funds came through from IMF’s Special Drawing Rights (SDR) facility aimed at increasing liquidity across the global economies.
“The immediate impact of this support from the IMF is to increase the foreign exchange reserves of the country by US$961 million. This will go a long way in buttressing the stability of our domestic currency,” the joint statement reads.
The funds were transferred to the RBZ Monday.
The authorities committed to use the funds prudently by supporting the country’s welfare institutions like health, education, and other productive sectors of the economy.
“The funds will be used prudently, with utmost accountability to support social sectors namely health, education, and the vulnerable groups, productive sectors that include industry, agriculture and mining, infrastructure investment covering roads and housing, and foreign currency reserves and contingency fund to support our domestic currency and macro-economic stability.
“We would like to express our gratitude to the IMF for the disbursement which shall be used transparently in line with the IMF note,” the statement added.