RBZ secures $600m nostro facility

HARARE - The Reserve Bank of Zimbabwe has negotiated for an enhanced nostro stabilisation facility of $600m from Afreximbank to manage the cyclical nature of Zimbabwe’s foreign exchange receipts.

Economic experts said this is positive in the short-term as banks have been struggling to settle maturing lines of credit.

The depletion of nostro balances has been blamed in part on the perennial current account deficit. Continued foreign payments challenges have made the country a less preferable destination of foreign capital as generally investors invest where they can withdraw.

These payments challenges have also made local companies struggle to procure some necessary raw materials and build up unnecessary costs to businesses.

Equity Axis said the facility — a stop-gap measure — may help smoothen transactions in the short-term.

“Serious structural reforms are needed to take the country out of this challenge. Measures that will ensure productivity and competitiveness are therefore necessary,” it said.

Comments (1)

The reason Zimbabwe will never come out of it financial disaster is you have a group of Central Bankers and Minister of Finance that has no clue of what they are doing. Borrowing themselves deeper and deeper in the fiscal debt and generate no significant revenue to pay down any of the current debt. Zimbabwe cannot explain in a country with the mineral resources it has cannot generate $1 billion a month with gold, platinum, diamonds, and some of the most vast minerals in the world. You have a country that is said and nothing but academia with degrees and no knowledge of how to create revenue but can only beg themselves deeper into debt. It is the political patronize that is derailed Zimbabwe to its doom. This has nothing to do with sanctions just 2 people in the most important positions Finance and Governor of the Central that are a complete fools and disgusting themselves at knowledgeable at their position but is causing major long term damage to the growth of Zimbabwe,.

Piankhi - 9 August 2017

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