Zimbabwe’s foreign currency receipts maintain upward trend, hit US$7,7 billion mark

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By Alois Vinga

ZIMBABWE’s foreign currency receipts have reached US$7, 7 billion, thereby marking a significant increase if compared to the same period last year.

The development indicates the existence of relatively stable economic fundamentals.

Foreign currency receipts have been on an upward trajectory with the Reserve Bank of Zimbabwe (RBZ) reporting that during the period January and June 2022 an increase of 33,6% to US$5,4 billion was realised compared to just US$4,1 billion during the same period in 2021 despite raging economic headwinds.

In an update Friday, the Reserve Bank of Zimbabwe (RBZ) governor John Mangudya said the Monetary Policy Committee expressed confidence over the prevailing favourable external sector environment as reflected by robust performance in foreign currency receipts.

“This will provide further impetus to the achievements relating to the exchange rate and price stability. Foreign currency receipts stood at US$7,7 billion as at 31 August 2022, representing a 32.4% increase from US$5,.8 billion recorded during the same period in 2021,” he said.

The central bank governor said the foreign currency receipts compare favourably with the corresponding foreign payments which amounted to US$5,1 billion as at 31 August 2022, translating into a surplus foreign exchange position with attendant positive implications for external sector stability.

Zimbabwe is currently experiencing a positive current account prompted by improved value of exports of both goods and services as well as international transfers of capital since 2019.

The developments have been underpinned by firming global commodity prices and rising diaspora remittances.

Notably export earnings between the period January and June 2022 increased by 45% to US$3,5 billion up from just US$2,4 billion in the comparable period mainly driven by mineral exports as commodity prices continued to be significantly higher in 2022.

The Treasury has since acknowledged that gold exports have benefitted from lucrative prices offered on the global markets.

Agricultural exports surged to US$434, 5 million in 2022 from US$303, 2 million in the first half of 2021, on account of higher tobacco export volumes and firmer prices.