THE Reserve Bank of Zimbabwe (RBZ) now has $1,19 billion worth of liquidity facilities from various foreign institutions, as it seeks a solution to foreign currency shortages.
BY TATIRA ZWINOIRA
In a presentation to Parliament on Monday, RBZ governor, John Mangudya said they had put these facilities in place to improve the forex situation in the country.
“The bank’s key focus is, therefore, on achieving a sustainable external balance through active export promotion, astute management of the country’s import bill and resolving the country’s external debt arrears.
“In pursuance of this objective, the bank has put in place measures to support export development for a robust external soundness and to create foreign currency reserves to cushion the economy,” he said.
“…whilst simultaneously encouraging local production in order to minimise demand for imports that may be produced locally.
“Success has also become the economy’s own worst enemy as firms respond very positively to government’s call to produce locally and enhance production and exports under the Zimbabwe is open for business mantra.”
Some of the facilities include three from the Afreximbank, a $600 million loan facility, $90 million diaspora bond facility and another $150 million loan facility.
The $600 million facility has been previously reported and is meant to finance existing facilities, pre-financing gold exports and payment of fees and costs.
The other facilities are a $100 million capital expenditure facility from the Trade Development Bank and a $250 million loan facility from British-based Gemcorp.
The Trade and Development Bank, formerly PTA Bank, is a trade and development financial institution in Africa, while Gemcorp Capital is an independent investment
management firm focused on emerging markets.
All these facilities are meant to stabilise the foreign currency situation in the country, which continues to worsen.