Funds Held In Offshore Banks Increased to $1 Billion In 2016 From $300 Million In 2013: RBZ
Reserve Bank of Zimbabwe deputy governor Dr Kupukile Mlambo has revealed that the amount of money held in foreign banks by Zimbabweans has been increasing since 2013. This was when the last elections were held which ushered the end of the Global Political Agreement (GPA). Mlambo attributed the increase in money being kept outside the country to increased levels of uncertainty and perceived risk in Zimbabwe. The deputy governor added that this reflected that Zimbabweans lacked confidence in the local economy and that President Emmerson Mnangagwa’s administration has to work hard to rectify that perception.
The money held by Zimbabweans in foreign bank accounts in 2008, just before dollarisation and the Government of National Unity (GNU) stood at US$800 million. During the period of relative stability and confidence brought on by the GNU, the money in the offshore accounts dropped to US$300 million in 2013 as people used the local banking system more. However, after the uncertainty brought on by the 2013 elections, the balance in offshore accounts increased again and went to US$ 1 billion in 2016.
Speaking at the State of Mining Industry Survey report last Friday, Mlalmbo said:
Everything comes down to confidence.
If confidence returns on the market, foreign currency shortages will disappear. Bank queues worry us, but what we are facing is a shortage of foreign currency, not a shortage of cash. Our US dollar in Zimbabwe is (not) used for importing equipment, but it is also used for buying tomatoes on the roadside.
The amount of money held by Zimbabweans in foreign banks was about US$800 million in 2009. But by 2016, it had gone back to just under US$1billion. This was the time when we were beginning to have foreign currency shortages,
The RBZ has said that an estimated US$ 1.8 billion is externalised every year. Just after his inauguration, President Emmerson Mnangagwa announced a 3-month amnesty and called on people who illegally externalised money to return the funds. Mnangagwa said that people could return the funds without any fear of prosecution during this period. However, after the three month period elapses, the authorities will start making arrests.
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