RBZ to draw down $600m nostro facility

THE Reserve Bank of Zimbabwe (RBZ) will begin drawing down the $600 million nostro stabilisation facility as early as next week in a move expected to stabilise the situation amid a growing backlog of foreign payments.


The backlog has created bad blood between local firms and foreign suppliers, with players warning of a shortage of basic commodities.

RBZ governor, John Mangudya said whether there were bond notes or not, inflation would still go up due to real time gross settlement (RTGS) balances being more than foreign currency.

“So what is the solution? The solution is to increase the foreign currency in supply (nostro). Once you increase foreign currency in supply, you will lessen the rates (premiums) so that is why we are bringing in the $600 million so that those things (premiums) go down. Once we put $50m or $100m those things will go down… next week, we will start drawing down on the facility,” he said.

“Zimbabwe is a small economy, so if you were to look for $1 billion (in nostro funds) against the RTGS balances, all those things (premiums) would go away. If RTGS balances on $1,6 or $1,8 billion that is nothing, it is only that we do not have much access to foreign finance.”

Mangudya said the premiums and RTGS balances were symptoms of the major problem of low production leading to low exports.
RBZ negotiated for the enhanced nostro stabilisation facility from Afreximbank to manage “the cyclical nature of Zimbabwe’s foreign exchange receipts”. Afreximbank are guarantors to an export incentive facility. Exporters are paid the incentive in the form of bond notes.

One of the shortages being caused by a lack of foreign currency were fuel, as some service stations were reportedly out of either petrol or diesel on particular days.

Also, critical raw materials are starting to run dry due to unavailability of foreign currency to pay for supplies.
Before, nostro balances acted as assurance for foreign suppliers and they would in turn give credit terms to certain manufacturers.

The continuing depreciation of foreign exchange in the market has led to the RBZ and banks to draw on nostro balances more to service the local market.

As such, the nostro stabilisation facility is expected to ensure that the revival of firms is strengthened and that critical imports of fuel and electricity are assured.

Last week, business said foreign suppliers were reportedly cancelling credit terms with local firms, demanding cash up front before making any deliveries, as the forex crisis in the country continues unabated.


  1. Admit it Sir that you have failed, you were warned about your bond notes but you wanted to please your masters, now look at were you have taken the economy, 3 tier pricing, liquidity challenges, forex disappearing, inflation beginning to get out of hand. We are heading for a disaster.


  3. Everything is being done to make zanu pf limp through the election. These measures will themselves also not be sustainable in the medium to long term without fixing fundamentals the biggest of which is removal of zanu from govt

  4. One way of dealing with the foreign currency problem where people access $ after having deposited bonds or transfer amounts (paper money as opposed to external visa transfers or payments) is to go back to the drawing board. Think through why it was necessary to introduce bond notes, think through whether it makes sense to exchange paper for money and think through whether the country can replenish paper by US$. What RBZ should have done is to have mirror accounts that they flatly refused. Some of us argued for this from the very beginning because of ZANUoid arrogance this was rejected. Mirror accounts would have made sure if you deposit bond, you can only withdraw bond from your account, if you deposit $ you can get $ and if you have bonds but want $ you apply for the $ (so that getting $ become an exchange control issue.

  5. Comment…they will need it if she picks up fights with bitches over there since those boys are going

  6. Mr Mangudya pleasedeal with imports.Silly things imported like soap,cooking oil,busciuts ,chocolates,sweets n all.Get these manufactured locally.a look in the streets pavements the amount of bathsoaps from South is way too much.Cooking oil is still coming in large numbers.greenbar is worse.Come on Governor.DO SOMETHING.Creat local jobs than exporting them.

  7. Fix the politics first and every else will fall into place, but how do fix the politics? Conduct elections whose outcome is not in dispute. Why restrict international observers from monitoring your elections if you have nothing to hide. You want the international community to give you money but you do not want them nearer to your election process.

  8. John Mangudya is too small to resolve the economic or cash crisis.Even any other Governor whether from Jupiter or Harvard etc will not resolve this crisis. It is a political problem and has to be resolved politically. Do you think Mugabe would stop stealing peoples money? Therefore you need a new person at state house who will not steal from citizens at the same time arrest those in his GVT who steal in his name.

  9. nehanda nyakasikana

    zero production means zero value…money becomes a commodity where there is no value being exchanged..the only production that will happen is printing bond notes to satisfy demand for cash that is continuously losing value and it goes on and on and on……….until Zanupf recalls Gono at RBZ coz Mangudya can’t resign but they’ll replace him

  10. WaMangudya. why did this not happen during the inclusive government? Just resign while its still honourable for you sir.The problem is Zanu PF’s retrogressive policies and arrogant politicians who don’t understand basic economic principles but want to run a country.

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